Equity Bottom-Up

• Back on 6 November 2024, we published an insight called 2025 High Conviction: Samsung Electronics. In this insight, we provide an update of Samsung Electronics.
• Samsung Electronics reported operating profit of 12.1 trillion won (up 31.8% YoY and 18.7% higher than consensus) in 3Q 2025.
• The final installment of the 12 trillion won+ inheritance tax is due in April 2026.

• Chinese government’s efforts to ban Hanwha Ocean’s five U.S. subsidiaries from conducting any transactions with organizations or individuals in China is likely to have material Negative impact on Hanwha Ocean.
• If Hanwha’s U.S. subsidiaries are banned from Chinese suppliers, they’ll need to source alternatives (Japan, Europe, or domestic U.S. firms), that could involve 20–50% higher costs with longer lead times.
• Basically, what’s going on is that the Chinese government wants to slow down the United States’ efforts to rebuild its shipbuilding sector with the help of Korean shipbuilders.

• The commerce landscape is about to undergo a structural transformation as PayPal and Alphabet’s Google join forces in a multi-pronged AI-driven payments partnership launching in Q4 2025.
• Announced in September, the alliance will embed PayPal’s checkout experience directly into Google’s ecosystem—across Google Cloud, Google Ads, Google Play, and select consumer-facing properties.
• At the same time, the two companies are co-developing AI frameworks to power agent-led transactions, where autonomous digital agents make purchases on a user’s behalf using PayPal data.

• Tata Consultancy Services has announced a bold USD 6–7 billion investment to build a 1 GW sovereign AI data center network across India, its most capital-intensive project to date.
• This move shifts TCS from labor-based IT services to AI-driven infrastructure, aligning it with global compute leaders and advancing India’s AI and data-sovereignty goals.
• TCS’s initiative could reshape India’s digital backbone, driving investment across allied sectors and marking a long-term re-rating opportunity for Indian tech toward infrastructure-led growth.

• Shares of fertilizer giant Mosaic Co. have been under significant pressure as the company grapples with dual setbacks — unplanned phosphate plant outages and ongoing macroeconomic headwinds tied to U.S. trade tariffs.
• On October 10, the company disclosed a meaningful production shortfall in its phosphate segment for Q3 2025, citing mechanical issues and utility interruptions that pushed preliminary volumes down to just 1.7 million tons, well below expectations.
• This comes on top of a challenging landscape in which U.S. tariffs have eroded the competitiveness of American fertilizer exports.

• Along with political turbulence, expectations of a near term BoJ rate hike may be diminishing; nonetheless, we believe that these rate hikes will, at worst, be delayed and not derailed
• We take profits on Mizuho in big caps and on Hirogin Holdings in mid-caps, downgrading these names from buy to neutral whilst generally retaining banks with higher levels of cross-holdings
• We maintain the following Japanese banks on buy ratings; in the big-caps, we keep Resona and Shizuoka and in the mid-caps we stick with Iyogin Holdings, Hokuhoku and Hachijuni

• Nanya Tech 3Q25: Rebounds to Profit Thanks to DDR4 Price Surge Windfall… But Underlying Structural Drivers Remain Unsteady
• The World’s DDR4 Shortage to Extends Pricing Spike Through 4Q25
• Nanya Technology vs SK Hynix — We Expect Relative Strength Ahead for SK Hynix Over Nanya Tech

• Peel Hunt is a UK-based investment bank specializing in mid-cap and growth companies, offering a diversified suite of services across investment banking, research and distribution, and execution services. This integrated model provides some resilience against market cyclicality.
• The company’s financial performance has been impacted by challenging UK capital market conditions, characterized by a downturn in IPOs and M&A activity. This has led to recent net losses and a declining revenue trend over the past three years.
• Management is focused on strategic initiatives to drive future growth, including expanding its client base, particularly within the FTSE 350, diversifying revenue streams with a greater emphasis on M&A advisory, and investing in technology to enhance efficiency and client offerings.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Microsoft is making a bold move into the healthcare AI space, partnering with Harvard Medical School to improve the reliability of medical advice generated by its Copilot assistant.
• The collaboration, set to be unveiled with an update to Copilot as early as this month, integrates health content from Harvard Health Publishing.
• This step reflects Microsoft’s broader ambitions to establish Copilot as a leading AI assistant not just in productivity software but in areas demanding high accuracy and trust—like healthcare.

• As Johnson & Johnson (JNJ) faces intensifying competition in the immunology landscape, recent reports indicate the healthcare behemoth is exploring the acquisition of Protagonist Therapeutics, a biotechnology firm currently collaborating with JNJ on the development of icotrokinra, a novel oral therapy targeting immune diseases like plaque psoriasis and ulcerative colitis.
• The news has driven Protagonist’s stock up nearly 30%, valuing the company at around $4.2 billion.
• JNJ already holds exclusive commercialization rights to icotrokinra, which analysts at Leerink Partners project could generate peak global sales of $9.5 billion.

• Review of the conventional arguments (Bloomberg article): the timing gap between Capex and Revenue is the real issue.
• Review of history of Tech Bubbles (Krugman): not clear if AI is a bubble, it could keep going for years, but if it bursts it will be worse than 1999-2003.
• Best AI comp is Cloud Computing. Both enable new data analytics, new applications. Both are platforms. US Cloud Computing revenues increased 25x in 10 years (2015 to 2024).

• BYD’s monthly sales volume decreased YoY for the first time in September.
• We expect the revenue growth rate will slow down to 16%, but op margin will rise in 2026.
• We believe the stock price is overvalued, whether measured by time-series or cross-sectional methods.

• NVIDIA Corp (NVDA US) is setting up an offshore headquarters in Taipei, and is currently in the process of acquiring land.
• Taiwan’s central government is currently ruled by the Democratic Progressive Party (DPP), while Taipei City is governed by a mayor from the Kuomintang (KMT), creating political complications.
• Politics often takes precedence over economics, yet in a democracy, politics is driven by competing parties—inevitably leading to conflicts of interest.

• NSE dominates market as it maintains a near-monopoly (∼90% share) in equity cash and dominates the booming derivatives segment.
• NSE’s Revenue and PAT are 5-9x larger than BSE’s, with a much higher PAT margin (68% vs. 44%).
• NSE Holds appreciating, strategic minority stakes in high-potential financial infrastructure companies which can be seen as hidden value for NSE.

• The decision to invest a large sum of money to increase Hong Kong and Mainland China banking exposure, seems oddly timed
• There is no exceptional discount to drive this decision, and there is unlikely to be any major resumption former times
• Granular data on credit metrics from HSB shows marked weakness, deterioration, and with privatization, we may only see this data one more time.

Key points (machine generated)

• IonQ, valued at $12 billion, is shifting focus from quantum hardware to software and hybrid solutions amid industry challenges.
• The company reported only $3.1 million in hardware revenue last quarter, indicating a decline, alongside $4.5 million from consulting and cloud services.
• Investor sentiment is cautious, reflected by a short interest of 14.8% and a borrow cost of 0.5%.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Kuros Biosciences is rapidly transitioning into a high-growth, profitable medical device company, driven by the commercial success of its MagnetOs bone graft portfolio.
• Compelling Level 1 clinical data for MagnetOs, demonstrating superiority over the current gold standard (autograft) in challenging spinal fusion procedures, serves as a powerful commercial driver and solidifies its competitive advantage.
• Having recently achieved its first operating profit and positive EBITDA, the company is at a financial inflection point, with a clear path to sustained profitability and cash flow generation, significantly de-risking the investment profile.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Singamas is a major global container manufacturer facing a cyclical industry downturn, characterized by overcapacity and pressure on container prices.
• Despite challenging market conditions, the company maintains a strong balance sheet, an asset-light model, and is diversifying into higher-margin specialized containers, such as Energy Storage Systems (ESS), and growing its leasing business to provide more stable revenue streams.
• The company offers a compelling dividend yield, supported by a stated policy of returning value to shareholders, but faces significant risks from global trade tensions, economic slowdowns, and intense competition.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Key points (machine generated)

• FnGuide, established in 2000, is a leading provider of market data and equity indices in South Korea.
• The company operates in three segments: financial market data, equity indices, and fund ratings, with the latter having limited market share.
• FnGuide’s ‘Value-Up’ plan focuses on improving stability, profitability, and growth, positioning it alongside global competitors like Factset and S&P Global.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• In this edition: • AMG Critcal Materials | sells Graphit Kropfmühl to Asbury Carbons • SBM Offshore | entering AI partnerships with SLB and Cognite • Nexperia | Dutch government has taken control • Dutch politics | has GroenLinks/PvdA peaked too soon?

• U.S. President Donald Trump announced a 100% tariff on China.
• Facing the escalation of the U.S.–China tariff war, U.S. stocks plunged on October 10 under heavy selling pressure.  
• Facing the escalation of the U.S.–China tariff war, U.S. stocks plunged on October 10 under heavy selling pressure.  

• 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 14 pair trade opportunities across four markets and six sectors persist.
• 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.

• TSMC: +19% Premium; Good Level to Close Out for Those Short the ADR Spread
• UMC: -3.9% Discount; Rare Deep Discount Good Level to Long the ADR Spread
• ASE: -5.5% Discount; Any Spread Below Parity a Good Level to Long the ADR Spread

• Mi Technovation is strategically diversifying its business to mitigate the cyclicality of the semiconductor industry, expanding from its core equipment business into semiconductor materials and solutions.
• The company is well-positioned to capitalize on long-term semiconductor industry growth, driven by secular trends such as AI, 5G, and electric vehicles, through its expanding product portfolio and global footprint.
• Financial performance shows strong top-line growth, but margin volatility and cash flow inconsistencies highlight operational risks and the capital-intensive nature of its expansion strategy.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Context: Friday’s sell-off occurred after the Australian market closed, but several ASX-listed companies were swept up in the decline through dual listings or U.S.-traded ADRs.
• This Insight looks at the impact on prominent S&P/ASX 200 constituents — including BHP, CSL, and major banks. While some companies showed limited movement, others, such as BHP, experienced sharper declines.
• Why Read: Understand where the Australian market might be headed when trading resumes after the weekend.

• Zengame Technology is a niche developer of online card and board games in China, demonstrating strong historical profitability and a commitment to shareholder returns through high dividend payouts.
• Recent financial performance indicates a significant slowdown, with declining revenue and contracting margins, reflecting intense competition and potential saturation in its core markets. The 3-year CAGR for net income is negative, contrasting sharply with its 5-year growth.
• The stock trades at a low valuation compared to peers, suggesting it could be a value opportunity if it can stabilize its user base and revenue. However, it also faces substantial risks from regulatory oversight in China and competition from dominant industry players.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• AT&T is undergoing a strategic refocus on its core telecommunications business, prioritizing 5G and fiber network expansion to drive future growth.
• The company exhibits stable financial performance with recent growth in service revenues and strong free cash flow, supporting network investments and shareholder returns.
• Significant challenges remain, including a substantial debt burden and intense competition in the mature U.S. telecom market, which could pressure margins and growth targets.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Wingtech Technology is undergoing a significant strategic transformation, divesting its lower-margin Original Design Manufacturer (ODM) business to focus on its high-margin semiconductor operations through its subsidiary, Nexperia.
• The company is a global leader in the smartphone ODM market, but this segment has faced profitability challenges, contributing significantly to recent net losses despite accounting for the majority of revenue.
• Future growth and valuation re-rating hinge on the successful expansion of its semiconductor business, particularly in high-growth sectors like automotive, industrial, and AI, leveraging Nexperia’s strong market position in discrete semiconductors, logic, and MOSFETs.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Innovative Niche Player: CleanSpace is a designer and manufacturer of advanced Powered Air Purifying Respirators (PAPRs), distinguished by its patented, compact, and ergonomic all-in-one design that eliminates the need for cumbersome belt-and-hose units common among competitors.
• Financial Turnaround in Progress: The company is demonstrating a significant operational recovery, with strong revenue growth of 26% in FY25, expanding gross margins to nearly 75%, and achieving positive EBITDA and operating cash flow in the second half of FY25. It is on a trajectory to reach sustained breakeven.
• Strategic Growth Focus: Having pivoted from a pandemic-driven healthcare focus back to its core industrial market, CleanSpace is pursuing growth through geographic expansion in the US, Europe, and Asia, alongside new product launches and growing its recurring revenue from consumables, which now account for 47% of sales.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Context: The ANZ (ANZ AU) vs. Macquarie (MQG AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity. 
• Highlights: Long Macquarie, short ANZ targets a 6% return. Friday’s U.S. sell-off and today’s ANZ’s strategy update could drive early trading volatility in the pair.
• 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.

• Global Apparel Leader with Strong Growth Momentum: Fast Retailing is a dominant force in the global apparel industry, primarily through its flagship UNIQLO brand. The company has demonstrated a consistent track-record of robust, double-digit growth in revenue and profits, driven by the successful international expansion of UNIQLO, particularly in North America and Europe. The company forecasts continued strong growth, projecting a 10.3% revenue increase for FY2026.
• Unique Business Model Focused on Quality and Innovation: Unlike typical fast-fashion players that chase fleeting trends, Fast Retailing‘s ‘LifeWear’ philosophy emphasizes high-quality, functional, and durable basics. This is supported by a vertically integrated SPA (Specialty-Store Retailer of Private Label Apparel) model, which controls the entire process from design to sale, and a strong focus on material innovation and technology to enhance operational efficiency.
• Strategic Challenges and Key Risks Remain: Despite its success, the company faces significant risks. It has a heavy reliance on Asian markets, particularly Greater China, making it vulnerable to regional economic and geopolitical instability. The global apparel market is intensely competitive, and the company must contend with formidable rivals like Inditex (Zara) and H&M, as well as navigate supply chain complexities and potential controversies regarding labor practices.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• The 11th national VBP has optimized the selection of price difference control “anchor points”, which is an important signal, implying that future VBP will follow the general direction of “anti-involution”.
• As long as there’s no significant difference in pipeline data, buyers are more concerned about the speed of R&D progress and may not necessarily dwell on potential advantages and disadvantages.
• Hengrui’s innovative drug revenue was slightly lower-than-expected. The Company’s 2025 employee stock ownership plan has lowered the compound growth target for innovative drugs from 30% to 25%.

• A recent fire at Novelis’ Oswego, New York, aluminum rolling mill has sent shockwaves through the U.S. auto manufacturing sector, with Ford Motor Co. standing out as one of the most directly affected.
• Novelis, the largest supplier of aluminum sheet to the U.S. auto industry, experienced a substantial disruption that forced the plant to temporarily halt production.
• Ford, which sources aluminum from this plant for several of its core vehicles, including the high-volume F-Series pickup trucks, is facing heightened supply chain risk as a result.

• GitLab has reentered the takeover rumor mill after a noticeable dip in its share price, reigniting chatter across trading floors and financial media alike.
• The latest speculation was stirred by a Betavile “uncooked” alert circulated on October 7, 2025, hinting that the DevSecOps platform may once again be attracting acquisition interest.
• This follows a July 2024 report that GitLab was exploring a potential sale after drawing interest from industry players including cloud monitoring giant Datadog (NASDAQ: DDOG).

• Info Edge delivered 12.1% year-on-year growth in Q2 FY26 billings to INR 729 crore, led by steady momentum in Non-IT hiring and healthy traction in 99acres and Jeevansathi.
• The mix shift toward Non-IT and consumer-facing platforms signals a stronger, more balanced growth profile, cushioning the business from the ongoing IT hiring slowdown.
• With diversified revenue streams, disciplined cost control, and early benefits from AI integration, Info Edge appears positioned for sustained growth and gradual margin expansion ahead.

• Intercontinental Exchange, the parent of the New York Stock Exchange, has confirmed a $2 billion investment in Polymarket, a blockchain-based prediction platform that lets users speculate on outcomes across politics, sports, finance, and pop culture.
• The investment, announced on October 7, 2025, values Polymarket at approximately $8 billion pre-investment and marks a decisive move by ICE into decentralized finance (DeFi).
• ICE will fund the deal entirely in cash, with no expected material impact on its 2025 earnings or capital return plans.

• Itron has struck headlines once again, this time by signing a definitive agreement to acquire Urbint for approximately $325 million, to be funded from cash on hand.
• The closing is expected in Q4 2025.
• This move follows a strong Q2 2025 delivered by Itron—with revenue of $607 million, record margins, and free cash flow of $91 million—though the company modestly trimmed its full year revenue midpoint while raising its EPS outlook.

• Two weeks ago, Nvidia announced a potential $100 billion investment in OpenAI to fund one of the largest data center buildouts in tech history, a move immediately questioned for its circular structure.
• Just days later, OpenAI inked a similarly structured deal with AMD, pledging tens of billions for chip purchases while simultaneously becoming one of AMD’s largest shareholders.
• These deals, while bold and futuristic, have sparked concern that the AI sector’s rapid trillion-dollar expansion is not entirely organic but propped up by a dense web of interlinked investments between a handful of players.

• Qualcomm has made headlines once again with its latest strategic move: the acquisition of Arduino, the opensource hardware pioneer boasting a 33 million-strong developer base.
• While financial terms remain undisclosed, the implications of this deal are significant.
• The acquisition aligns with Qualcomm’s push into automation, robotics, and the broader AI-enabled device ecosystem.

• The recent earnings report from Renault Group reflected a mixed performance marked by several strategic and financial dynamics.
• The introduction of François Provost as the new CEO was a noteworthy event, suggesting a leadership transition focused on continuity, strategic maneuverability, and performance standards.
• On the financial front, Renault Group’s revenues rose to €27.6 billion, marking a 3.6% increase at constant exchange rates compared to the previous year.

• Dell doubles long-term growth outlook to 7–9% revenue and 15%+ EPS CAGR through FY30, led by AI infrastructure.
• AI PCs emerge as Dell’s next growth engine; global refresh cycle could finally kickstart long-awaited PC upturn.
• Taiwan makers Asus, Acer, Quanta, and Wistron positioned to benefit as AI PC and server demand scales together.

• In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the next two weeks (10 to 24 October 2025).
• Top 10 picks in this bi-weekly include Samsung Electronics, Samsung Life Insurance, LG CNS, SK Hynix, KT&G, Naver, Samsung C&T, LG Uplus, Hyundai Elevator, and SK Inc. 
• The semiconductor sector was a big winner in the past two weeks. Some of the best performing stocks in this period include SK Hynix, Samsung Electronics, and Hanmi Semiconductor. 

• TSMC and UMC 3Q revenues are slightly above Guidance / Consensus. In US$, TSMC revenues growing at 40% YoY. Legacy Fab UMC growing at 4%. 
• This will continue, even if AI / HPC growth is slowing into 2026, the gap will remain wide between AI / HPC (say 35% growth) and Legacy (5%). 
• Ongoing concerns of AI investment bubble reflect “a lack of imagination” (Lisa Su). Stick with the category winners Nvidia – SK Hynix – TSMC , followed by AMD – Micron.

• Context: The ABC Mart (2670 JP) vs. Fast Retailing (9983 JP) price-ratio has deviated more than three standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long ABC Mart (2670 JP) and short Fast Retailing (9983 JP) targets an 11% return. Both companies reported very recently.
• 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.

• Electronic payments and consumption surged post the GST rate cut, with Delhivery reporting a record 104 million shipments in September 2025.
• The Ecom Express integration and festive demand have positioned Delhivery for volume leadership and margin expansion.
• With strong execution and improving capital efficiency, Delhivery is set to consolidate its dominance in India’s third-party logistics market.

• Tadashi Yanai has finally achieved one of his many long-term ambitions: surpassing ¥1 trillion in sales in the home market. 
• This, after exceeding ¥3 trillion globally for the first time but his goal of ¥10 trillion remains outstanding.  Whether a mostly single-brand company can achieve such volume is debatable.
• Yanai is rebuilding GU in the hopes of creating a second brand – while at last admitting failure with his old French acquisitions.

• FY02/26 forecast revised upward: revenue JPY225.0bn (+9.8% YoY), operating profit JPY8.2bn (+12.2% YoY), net income JPY4.8bn (+26.2% YoY).
• 1H sales rose 11.3% YoY, driven by product initiatives, new stores, and price revisions; profit margin improved.
• Overseas sales declined 1.7% YoY due to exchange rates; segment profit fell 4.8% YoY from higher labor costs.

• We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the October catalog.
• With October another month of material YoY SKU declines and a focus on higher overall pricing, we believe it is increasingly obvious that Betterware management is focusing the overall business on driving higher returns.
• Further, even against materially tougher comparisons, the overall level of discounting has continued to tick down, which speaks to limited need to clear goods.

Key points (machine generated)

• ATRenew’s market capitalization has dropped 79% since its IPO in mid-2021 due to factors like the pandemic and economic slowdown.
• The company’s shift to direct retailing of refurbished devices has led to skepticism about profitability and minimal analyst coverage.
• Despite challenges, ATRenew shows potential for growth with an expected CAGR of 23.4% over the next four years.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• Builders FirstSource is the largest U.S. supplier of structural building materials and services, with 2024 net sales of $16.4 billion.
• Revenue is primarily generated from new single-family construction (71%), with diverse product offerings including lumber, windows, and manufactured products.
• Analysts consider BLDR undervalued due to expected housing starts and operational efficiencies, with chairman Paul Levy recently investing $55 million in the company.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Guidance slightly ahead: FY8/26 outlook modestly above consensus at both revenue and operating profit, signalling continued steady growth.
• Global strength offsets China: Expanding international markets and yen tailwinds continue to drive profitability, plus an end to lingering China weakness?
• Valuation supportive: Trading below historical averages on EBIT and P/E, offering global exposure at a reasonable multiple.

• Our NAV analysis of Samsung C&T suggests implied market cap of 43 trillion won or target price of 253,146 won per share which is 28% higher than current price. 
• The biggest components of Samsung C&T’s value is its stakes in Samsung Electronics and Samsung Biologics which are worth 54.1 trillion won (161% higher than Samsung C&T’s current market cap).   
• In the past three months, the share price discrepancy between Samsung Electronics and Samsung C&T is more noticeable (Samsung Electronics – up 47.3% versus Samsung C&T – up 15.9%). 

• Indo Tambangraya Megah (ITMG IJ) recently announced a 10% buyback, reaffirming our bullish stance on the company. With 67% of its market capitalization in cash, it can be easily accomplished. 
• The company can also maintain its 65% payout ratio, which equates to an 8% yield on net profits of $180-200 million USD for FY25. 
• We now look to November 3rd, 2025, as the next catalyst, when the shareholder meeting (GMS) will be held to vote on the buyback, among other decisions.

• Total deliveries grew by 35% YoY in Sep. 2025 and 43% YoY in 3Q25.
• BEV (Battery Electric Vehicle) deliveries were double of the same period last year.
• We believe the stock has at least 29% upside for next 12 months.

• Singapore’s stellar performance has been propelled primarily by large caps. We think investors should focus on SMID now, as MAS’s S$5bn EQDP incentivizes fund managers to look outside index stocks.
• We screen SMID stocks in SGX with above-market forecast earnings growth, EPS estimate upgrades over past 6 months, low leverage and reasonable growth adjusted valuations (PEG<1.4x).
• Eight SMID stocks come up on our screen, spread across various sectors, but tilted towards Energy and Minerals and Mining. Most are net cash companies with ROEs higher than COEs.

• Trent Ltd (TRENT IN) reported first half FY2026 revenue growth at 19%, well below the Street’s full-year consensus estimate of around 26%.
• With Zudio store expansion wave now maturing and no new growth engine of comparable scale yet in sight, revenue growth appears to be normalizing to the low double-digit range.
• In this context, the stock’s steep valuation multiples (78.5x 1-year forward P/E) look increasingly difficult to justify; as growth expectations are recalibrated a valuation de-rating seems likely.

• With oil prices expected to remain under pressure from a persistent supply glut, investors and dealmakers are turning cautious and prioritising capital efficiency.
• Private equity-led consolidation in midstream signals growing demand for yield resilience amid falling oil prices and market uncertainty.
• MLPX ETF inflows in 2025 highlight investor preference for dependable midstream returns over cyclical energy exposure.

• MSIL decisively shifted to UVs, reaching a 41% segment share in FY25 via key launches (Brezza, Grand Vitara), fundamentally reversing market share losses to become a full-range powerhouse.
• The revised GST flat rate of 40% for SUVs reduces prices and boosts affordability, creating a powerful dual catalyst with the festive season for significant volume and market share growth.
• Strong exports grew by 17.5%, establishing MSIL as the parent’s global EV hub and mitigating local risks, while high EBITDA margins (~13%) ensure profitable and sustainable growth.

• With a 37.3% rally in Shanghai Electric Group Company (2727 HK)‘s share price in the last 5 trading days, it is poised for a correction, which is a long-term opportunity. 
• Key positive drivers include its Fanuc Robots earnings, progress in China’s nuclear fusion project, solid new order momentum, and speculation on asset acquisition.
• PER valuations are not cheap, but this is understandable due to the company’s transition. However, its 1.5x P/B multiple is not outrageously expensive relative to peers.

• Dominant Market Leader with Unmatched Scale: Vinhomes is Vietnam’s largest real estate developer, possessing a land bank significantly larger than its closest competitors, which underpins a long-term growth runway. Its integrated township model, supported by the Vingroup ecosystem (schools, hospitals, retail), creates a distinct competitive advantage and enhances property values.
• Robust Project Pipeline Driving Future Growth: The company has a clear development trajectory with several large-scale mega-projects in the pipeline, such as Vinhomes Vu Yen, Co Loa, and Wonder Park. These projects are expected to be key earnings drivers in the coming years, capitalizing on Vietnam’s urbanization trend and the rising middle class.
• Group-Related Risks and Market Sentiment Overhang: The company’s valuation is significantly impacted by its relationship with the parent company, Vingroup (VIC). Concerns regarding VIC’s financial health, potential liquidity challenges, and the use of VHM shares as collateral for group borrowings have created a persistent overhang on the stock price, overshadowing its strong operational performance.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• As Chips Move to 3nm and 2nm Designs, Tech Companies Could See a Sharp Increase in Their Chip Manufacturing Cost
• Intel (INTC.US): AMD to Submit Foundry Orders to Intel? We Think It’s Highly Unlikely. 
• HBM Stocks Will Keep Running (Micron, SK Hynix), It’s Just the Beginning 

• Multi-National and multimodal transportation company with well diversified transportation business operating from Singapore.
• ROE has started improving from low base of below 6% to around 8% over the last couple of years
• Underlying business is stable. Dividend yield at 5.5% is better than Singapore market 

• After months of going nowhere, Astroscale shot up more than 20% in the two trading days following the election of defense hawk Sanae Takaichi as president of the LDP.
• Astroscale made a small gross profit last quarter, but needs a rising flow of contracts and subsidies in order to turn profitable at the operating and net levels.
• At ¥825, the stock price is 38% below the ¥1,326 high reached just over a year ago. If Takaichi becomes prime minister, the chances of regaining that high would improve.

• World’s Largest Footwear Manufacturer: Yue Yuen is the global leader in athletic and casual footwear manufacturing, producing for top-tier brands like Nike, Adidas, and New Balance. Its immense scale provides significant competitive advantages.
• Dual Business Model with Integrated Retail: The company operates a core manufacturing (OEM/ODM) business and a significant sportswear retail and distribution arm in Greater China, Pou Sheng International (3813 HK). This provides diversification and end-to-end solutions for its brand partners.
• Challenging Near-Term Outlook but Attractive Valuation: While facing headwinds from rising labor costs, geopolitical uncertainties, and soft consumer demand in its retail segment, the company’s valuation appears compelling. Strong recent growth in net income and a high dividend yield present a potentially attractive risk/reward profile for long-term investors.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• 94% of Bikaji’s revenue now falls under favorable GST slab due to the recent rate cut, positioning it to gain significant market share through lower consumer prices.
• The company is strategically passing on the tax benefit to consumers via higher grammage and lower MRP, which is expected to drive an incremental 2-3% volume growth while sustaining margins
• The company has the immediate manufacturing headroom and distribution reach to capture the expected volume surge without major, immediate capital expenditure.

• Dabur India Ltd (DABUR IN) ‘s business is contracting in volume and value, with declining margins, masking structural weakness through recurring excuses and shifting narratives across seasons and quarters.
• Disclosure standards have been reduced; management hides key metrics citing “competitive sensitivity,” obscuring true demand, volume trends, and domestic business performance.
• Q2 guidance cut to mid-single-digit growth confirms prior double-digit guidance was untenable, exposing weak underlying demand and the market’s slow recognition of systemic underperformance.

• Makes branded and contract manufacturing snack food and confectionaries in Melaka Malaysia
• Super Ring is its own brand which is very popular among customers for its unique flavour
• Company is expanding capacity indicating the future revenue and profit grow

• On Holding AG is a high-growth premium sportswear brand that has rapidly gained market share through innovative products, particularly its patented CloudTec® cushioning technology, and effective marketing strategies.
• The company demonstrates a strong financial profile with impressive revenue growth, high gross margins, and a robust balance sheet with more cash than debt, enabling significant reinvestment into global expansion and product diversification.
• Key risks to the investment thesis include a high valuation that prices in significant future growth, intense competition from established industry giants, and potential margin pressures from currency fluctuations and tariffs.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Shares of Fair Isaac Corporation surged in recent sessions as investors digested a transformative pivot in the company’s pricing strategy and market positioning.
• The catalyst?
• FICO is testing a new pricing model that directly undermines the influence of the three major credit bureaus — Experian, Equifax, and TransUnion — by sidelining them in score delivery and distribution.

Key points (machine generated)

• Modern Dental (3600) manufactures and distributes dental prosthetics with a potential for over 15% CAGR from a share price of HKD 4.35.
• The company generates approximately 75% of its revenue from developed markets despite its primary manufacturing facility being in Shenzhen, China.
• Modern Dental is well-positioned to benefit from the growing global reputation of Chinese manufacturers for quality and competitive pricing.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• OpenAI agrees to deploy 6 gigawatts of AMD GPUs based on a multi-year, multi-generation agreement. The deal could be worth upwards of $100 billion to AMD through 2030
• AMD issued OpenAI a warrant for up to 160 million shares of AMD common stock, structured to vest as specific milestones are achieved, including AMD share price appreciation to $600
• Could a strategic partnership with Intel now also be on the cards? After all, OpenAI needs CPUs as well as GPUs, especially as they ramp into enterprise. Just saying…

• Tiong Woon is a key regional player in the heavy lift and haulage industry, poised to benefit from the upswing in the petrochemical, infrastructure, and construction sectors across Southeast Asia, India, and the Middle East.
• The company demonstrates a strong growth trajectory with a 3-year revenue CAGR of 10.08% and a net income CAGR of 19.04%, supported by a strategic focus on higher-margin, larger-capacity cranes and expansion into high-growth markets.
• Despite a positive outlook and solid financial performance, the company faces risks from market cyclicality, project delays, and margin pressure from rising costs. Its ongoing capital expenditure cycle supports long-term growth but currently weighs on free cash flow.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Suzuki Motor (7269 JP) had a disappointing Q1FY2025 driven by lower sales in India & Europe and impact of raw material cost and foreign exchange rates.
• However, we expect business performance should revive in H2FY2025 driven by booster shot from India.
• We remain positive on long term prospects of the company driven by its maiden EV launch and long term growth plans though near term valuation appears to be full.

• Post its recent IPO, Aegis Vopak has rapidly expanded its LPG capacity and is strategically de-leveraging to fund its massive, long-term ‘GATI’ (Gateway Access to India) expansion pipeline.
• As India’s largest third-party tank storage operator, the company is a critical, high-barrier-to-entry infrastructure play, directly capitalizing on the country’s surging energy, chemical, and industrial import dependence.
• The strategic joint venture and execution focus on high-margin, sticky, and growing segments like LPG and specialty chemicals position the company for sustainable, asset-backed growth.

• Sa Sa International Hldgs (178 HK)‘s 1.63x P/B is near-trough level, but the recovery in earnings in FY26 (+56.4%) and improving industry figures suggest earnings have bottomed. 
• Its 2Q FY26 turnover grew 8.4%, accelerating from 4.7% in 1Q and -9.7% in FY25. The 1H turnover equals 49.3% of FY26F (vs. 47.2% historically). We see upgrade potential.
• With net cash amounting to 19.3% of the share price, its 15.9x and 12.4x PERs for FY26F and FY27F do not look stretched.

• We highlight large and small cap companies that experienced significant insider buying during September 2025, as reported on the stock exchanges.
• We also present key sectors which saw insider buying during the month along with names which have moved significantly above the insider buying price.
• As September is a month just before the result season starts, some of these companies may highlight about improving prospects during coming quarters.

• Midea will achieve double-digit growth in 2025. As domestic home appliance market enters a stage of competition for existing customers, B-end market and overseas markets have become new growth keys.
• The development path of three giants becomes clear – Midea pursues full industry chain synergy with diversified layout/digital capabilities.Haier builds a global brand matrix through high-end/localized operations.Gree is lagging behind.
• For mature industry leading enterprises, 10-18x P/E is reasonable, or market value of RMB430-855bn based on Midea’s 2025 net profit forecast. Considering higher growth, valuation would be higher than Haier.

• Henderson Far East Income Ltd (HFEL) is an investment trust focused on providing a high and growing annual dividend, alongside capital appreciation, from a portfolio of Asia-Pacific equities.
• The trust is positioned to benefit from the structural growth trends in Asia, but its performance has been hampered by market volatility and its value-oriented approach, leading to a trade-off between a high yield and capital growth.
• Key risks for investors include geopolitical tensions in the region, the inherent volatility of Asian markets, and the use of gearing which can amplify both gains and losses.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• ABC Mart holds a dominant position in the Japanese footwear market, leveraging strong relationships with major brands and a successful private label strategy to drive consistent growth.
• The company is pursuing a dual-pronged growth strategy focused on expanding its high-end ‘Grand Stage’ store format in Japan and accelerating its presence in overseas markets, particularly in South Korea and Taiwan.
• Financial performance has been robust, with a strong 3-year CAGR in net income and free cash flow, supported by recovering margins and efficient inventory management. The company maintains a healthy balance sheet and a consistent dividend payout.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Bureau Veritas, a global leader in testing, inspection, and certification services, reported its financial results for the first half of 2025 with several key highlights.
• The firm achieved a revenue of EUR 3.2 billion, which represents an organic growth of 6.7% and a total growth of 5.7% on a reported basis.
• This increase was driven by high volumes and strategic pricing programs.

• Zijin Gold (2259 HK) , post the meteoric rise in its share price since listing last week, is now the most expensive gold miner stocks, globally, on an EV/Reserve basis.
• Investor expectations of gold prices climbing higher, driven by the yen’s sharp drop, a U.S. government shutdown, and growing anticipation of additional Federal Reserve rate cuts, are fueling the stock.
• For Hong Kong investors, Zijin Gold is the only pure-play, globally diversified gold miner, with expectations of index inclusion and strong demand driving its share price above fundamentals.

• PDD Holdings, Inc.’s second-quarter 2025 financial results reflect a strategic focus on long-term value creation rather than short-term financial gains.
• The company’s revenue for the quarter increased by 7% year-over-year to RMB 104 billion, driven primarily by online marketing services and transaction services.
• However, operating profit experienced a significant decline of 21% year-over-year, reflecting the company’s substantial investments in enhancing its platform ecosystem through its RMB 100 billion support program aimed at bolstering merchant capabilities and fostering sustainable growth.

• FuelCell Energy, Inc. (FuelCell Energy) recently reported its financial results for the third quarter of fiscal year 2025.
• The company demonstrated significant revenue growth, reporting $46.7 million, a 97% increase compared to the previous year.
• This increase was primarily driven by strong product revenues, notably from the delivery of replacement modules to Gyeonggi Green Energy Company (GGE) in South Korea and sales to Ameresco.

• Kalyan is aggressively expanding its non-South presence and scaling its omni-channel platform, Candere, driven by an asset-light, franchisee-owned, company-operated (FOCO) model.
• The FOCO model and a higher margin studded-jewellery mix in new markets are structurally improving return ratios and freeing up capital for aggressive, low-risk store rollouts.
• With significant deleveraging and a clear path to enhanced profitability, the fundamental story remains intact, nudging investors to look beyond cyclical factors and towards execution consistency.

• The U.S. government has introduced new export restrictions targeting the shipment of advanced chipmaking equipment to China.
• These rules, enforced by the Bureau of Industry and Security, have landed a heavy blow on Applied Materials, the world’s largest supplier of semiconductor manufacturing equipment.
• The company now anticipates a significant $710 million revenue shortfall: $110 million in Q4 2025 and an additional $600 million in 2026.

• Transformed Business Model: Following the acquisition by the Poonawalla Group, the company has pivoted from its legacy as Magma Fincorp to a tech-driven NBFC. It now focuses on prime retail consumers and MSME segments with a digital-first approach, significantly improving its risk profile and operational efficiency.
• Strong Parentage and Financial Flexibility: Backed by the Cyrus Poonawalla Group, the company benefits from a strong brand, significant capital infusion, and access to lower-cost funding. This has resulted in a ‘AAA’ credit rating and provides a substantial competitive advantage in the crowded NBFC space.
• Aggressive Growth Strategy: Management has outlined a clear vision for rapid expansion, aiming to significantly grow its Assets Under Management (AUM) by diversifying its product suite and expanding its distribution network. The strategy focuses on a mix of secured and unsecured loans to maintain a balanced risk-adjusted return.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• G8 Education is Australia’s largest publicly listed provider of early childhood education and care (ECEC), operating over 400 centres. The company is poised to benefit from favorable demographic trends and increasing government support for the sector.
• Recent financial performance shows consistent revenue and net income growth, driven by improved occupancy rates and disciplined cost management. The company has also demonstrated a commitment to shareholder returns through progressively higher dividends.
• Key strategic priorities include enhancing educational quality, improving workforce retention, and optimizing the centre network. However, the company faces significant risks from potential changes in government childcare subsidies, intense industry competition, and challenges in attracting and retaining qualified staff.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Market Leader with Strong Growth Potential: PT Mulia Boga Raya Tbk, through its flagship brand ‘Prochiz’, is the market leader in the Indonesian retail cheese segment with a 27.75% market share. The company is well-positioned to capitalize on the burgeoning Indonesian cheese market, which is projected to grow at a CAGR of over 5% annually, driven by rising incomes, urbanization, and the growing influence of Western cuisine.
• Robust Financial Performance and Margin Expansion: The company has demonstrated strong financial results, with significant double-digit sales growth and notable profit margin expansion in the first half of 2025. This performance is attributed to a favorable sales mix skewed towards higher-margin premium block cheese and achieving economies of scale.
• Strategic Synergies and Expansion Focus: As a subsidiary of PT Garudafood Putra Putri Jaya Tbk, KEJU benefits from significant operational and distribution synergies. The company is strategically focused on expanding its distribution network and growing its presence in the rapidly expanding food service sector, which is outpacing retail growth post-pandemic.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Paychex, a leading provider of human capital management solutions, has reported a strong start to its fiscal year 2026.
• The company achieved a 17% revenue increase alongside a 5% growth in adjusted diluted earnings per share in the first quarter.
• This robust performance is attributed to successful integration with its recent acquisition, Paycor, and sustained demand for Paychex’s human capital management solutions despite a challenging macroeconomic environment.

• AutoZone is under scrutiny following a high-profile insider transaction that coincided with its fifth consecutive earnings miss.
• On September 24, Scott Murphy, AutoZone’s Vice President and Controller, exercised long-standing options to acquire 2,860 shares and immediately liquidated them in a series of transactions totaling approximately $12 million.
• This sale occurred shortly after the company reported earnings that again fell short of Wall Street expectations—primarily due to an $80 million LIFO charge that cut into profitability.

• Materials, Healthcare and Tech sectors continue to lead the Hong Kong Secular Bull Market higher. The tech sector has been re-rating since Alibaba (9988 HK) announced its AI chip.
• Momentum, Growth, and Liquidity factors have led the Hong Kong market performance year-to-date.  Southbound flows into the Hong Kong market continue at historically high levels.
• Kingsoft Cloud Holdings (3896 HK) was rated a BUY by Deutsche Bank with its initial target price of HK$11.  Shenwan Hongyuan initiates coverage of CaoCao (2643 HK) a BUY.

• 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 nine pair trade opportunities across four markets and five sectors persist.
• 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.

• An agreement to supply OpenAI with energy-saving electric power equipment should be accretive to Hitachi’s sales and profits as long as the AI boom continues.
• Hitachi is also building an “AI Factory” based on Nvidia technology. This should accelerate the growth of Hitachi’s Lumada digital services platform, also boosting sales and profits.
• Hitachi’s share price jumped 10.3% on the OpenAI news. Data center news flow and AI sentiment now drive the share price. 

• What is happening with Advanced Micro Devices (AMD US) and Intel Corp (INTC US)?
• Intel’s stock price has risen about 50% from its April 8 low. However, we have yet to see any tangible progress in its manufacturing technology.  
• Intel’s stock price has risen about 50% from its April 8 low. However, we have yet to see any tangible progress in its manufacturing technology.  

• Severe Financial Distress: Vinfast is operating with deeply negative gross and net margins, leading to significant cash burn and a high degree of uncertainty regarding its path to profitability. The company is critically dependent on the financial support of its parent, Vingroup, and its founder for survival.
• Ambitious but Risky Global Expansion: The company is pursuing an aggressive and costly expansion strategy, pivoting from a challenging entry into the US and European markets to focus on high-growth potential markets in Asia, such as India and Indonesia. Execution in these highly competitive regions remains a key uncertainty.
• High-Stakes Bet on an Unproven Brand: While revenue is growing rapidly, this is off a low base and has been achieved through substantial losses. The company faces intense competition from established global automakers and new EV players, and its brand has limited recognition outside of Vietnam, posing a significant hurdle to capturing market share.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Chow Tai Fook Jewellery (1929 HK) is one of the best-performing Hang Seng Index (HSI INDEX) constituents YTD, but it is time to take some money off the table.
• At 5%, its 12-month forward dividend yield is about the lowest in the last five years, implying limited share price upside. Valuations have run ahead of earnings momentum.
• The recent recovery in Hong Kong jewellery retail sales is partly due to the low base effect. Additionally, a higher gold price will weigh on demand for gold products. 

• Fermi is a pre-revenue advanced energy and hyperscaler development company structured as a Real Estate Investment Trust (REIT), planning to build one of the world’s largest data center campuses, Project Matador, with its own dedicated power grid in Texas.
• The company aims to capitalize on the exponential growth in demand for data centers driven by artificial intelligence, offering an integrated solution of up to 15 million square feet of AI computing space and up to 11 gigawatts of low-carbon, on-demand power.
• Led by a management team with deep experience in the energy and government sectors, including former U.S. Energy Secretary Rick Perry, Fermi recently completed a successful IPO, raising approximately $683 million, despite having no revenue-generating operations to date.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• CP ALL is expected to benefit from the government’s copayment stimulus program, set to launch in October, directly through Makro, which supplies mom-and-pop stores and indirectly through 7-Eleven. 
• The company remains optimistic about a pick-up in growth in 2H2025, driven by promotions in 3Q2025 and government stimulus, along with improving margins driven by an improved product mix. 
• 7-Eleven remains on track to expand its store network by 700 new outlets in FY2025, is gravitating toward slightly larger stores, allowing an increased number of SKUs. Valuations remain attractive.

• Saint Bella (2508 HK) achieved 1H25 revenue of RMB 449.5M (up 26% YoY) driven by higher sales from postpartum business (up 25% YoY) as number of postpartum centers increased.
• The company opened 36 stores in 1H25 and average contract value of postpartum recovery sales at all service brands witnessed rise (Bella Isla saw highest increase, up 36% YoY).
• With no major growth hurdles visible for Saint Bella, secular demand in place and with consistent capacity additions it is worth to buy the stock at this point of time.

• eFishery, once a celebrated Indonesian agritech unicorn valued at over USD 1.4 billion, has collapsed following the discovery of a massive financial fraud scandal in late 2024.
• Investigations revealed that the company had grossly inflated its revenue and user metrics for years, leading to the suspension and arrest of its co-founders and the appointment of interim management to oversee the company’s remnants.
• The company is now considered commercially unviable in its current form, with investors facing near-total loss and the firm’s future highly uncertain. The scandal serves as a stark cautionary tale regarding corporate governance and due diligence within the regional startup ecosystem.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.