Equity Bottom-Up

• The TJX Companies, Inc. reported its first-quarter results for fiscal year 2026, demonstrating resilient performance across its various divisions amidst a challenging macroeconomic environment.
• The company achieved a 3% increase in comparable store sales, driven by higher customer transactions, with each division—both in the U.S. and internationally—contributing positively.
• Notable growth was observed in the HomeGoods division, which outperformed its competitors, delivering a 4% increase in comp sales and a 70 basis point improvement in segment profit margin compared to the previous year.

• Kakula mining is suspended due to seismic activity; dewatering and repairs are ongoing, with potential resolution by late Q3 2025 as operations gradually stabilize.
• Ivanhoe quadrupled copper output since 2021, maintaining over 55% EBITDA margins through high-grade ore and efficient operations.
• At US$2,000/t copper reserve value, Ivanhoe offers 40%+ upside—past disruptions like Vale and Freeport saw strong rebounds as uncertainty cleared.

• DigiPlus Interactive (PLUS PM) reported robust Q1 FY25 results, driven by an increase in MAUs to 7.5 million (6.5 in Q4). The company maintained its market share at ~45%.
• Net margins expanded 200 bps QoQ (to 18.2%), as the company benefited from a 500 bps reduction in its share of GGR to PAGCOR. 
• The stock has increased by >400% since January 2024, but it trades at 14.1x FY25 PE, with growth catalysts from the Philippines and Brazil expected in the future. 

• Workday Inc. reported a robust first quarter of fiscal year 2026, demonstrating solid growth in key financial metrics and notable advancements in its strategic initiatives.
• The company reported a 13% increase in subscription revenue, reaching $2.059 billion, and achieved a non-GAAP operating margin of 30.2%.
• This performance was driven by strong customer adoption across various industries, solid contributions from their partner ecosystem, and a continued focus on AI innovation.

• Nvidia’s first-quarter results for fiscal 2026 showcased an extraordinary ability to maintain momentum in the face of geopolitical disruption, marking a defining moment in its trajectory as a dominant AI chipmaker.
• The company reported a 69% year-over-year revenue surge to $44.1 billion, outperforming expectations despite the mid-April U.S. government ban on H20 GPU sales to China.
• The data center segment remained the primary growth engine, rising 73% to $39.1 billion, driven by rising AI infrastructure demand and the adoption of its cutting-edge Blackwell architecture.

• Target Corporation faced a set of challenging conditions in the first quarter of 2025, significantly impacting its overall performance.
• The detailed analysis of the quarterly results reveals a balanced mix of positive aspects, setbacks, and strategic adjustments, offering investors insights into the company’s current standing and future priorities.
• First-quarter sales for Target declined by 2.8%, primarily driven by a decrease in comparable sales of 3.8%.

• The Home Depot, during its first quarter of fiscal 2025, reported sales of $39.9 billion, which represented a 9.4% increase compared to the same period last year.
• However, the company’s comparable store sales declined slightly by 0.3%.
• The U.S. comps showed a modest increase of 0.2%.

• The “Value Up” initiative which kicked off in February 2024 has been intended to bring about corporate governance and market reforms which minority and especially foreign investors have long sought
• So far, these voluntary reforms have brought positive albeit limited benefits to South Korean equities; presidential elections, with potential legislative change, should act as a positive valuation driver
• We reiterate our positive views on Woori and Hana Financial which are the top banks based on our scorecard; these attributes are due to  attractive valuations and balance sheet credentials

• During its second quarter earnings for fiscal 2025, Toll Brothers, Inc. outlined its financial and operational performance amidst a challenging economic environment, providing insights into its strategies and market outlook.
• Toll Brothers reported robust financial performance for the second quarter, achieving record second quarter home sales revenue of $2.71 billion, which surpassed the midpoint of their guidance by $236 million.
• They delivered 2,899 homes at an average selling price of approximately $934,000.

• A 4–6 month Kakula disruption could reduce Zijin’s 2025 copper output by 4–8%, cutting EBITDA by ~7–11%.
• Ramp-Ups at Julong and Čukaru Peki can offset ~60–70% of the lost volume and partially protect margins.
• Lithium is expected to grow from 8% to 20% of EBITDA by 2028, driven by 300kt LCE capacity from low-cost brine assets.

• Aurora World is best known for its plush toys (Palm Pals and YooHoo & Friends). It is increasingly trying to leverage its toy character brands to expand into digital contents. 
• What makes Aurora World so interesting is its excellent fundamentals and deeply discounted valuations relative to The Pinkfong Company (IPO in 2H25) and SAMG Entertainment.
• Aurora World generated more than 80% of its sales in overseas markets including the United States, U.K., and Hong Kong. 

• NetEase, during its 2025 first quarter financial results presentation, outlined its performance and future strategies across various segments.
• The company reported an increase in total net revenue by 7.4% year-over-year, reaching RMB 28.8 billion, driven primarily by its gaming division, which witnessed a 12% increase in revenue.
• Net revenue from online games was notably high, with a growth of 14% quarter-over-quarter and 15% year-over year, emphasizing the success of titles like “Where Winds Meet” and “Marvel Rivals.” Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• MARA Holdings recently held its first quarter 2025 earnings call, offering insights into both its current operations and future strategies.
• The company faces a mixed landscape shaped by Bitcoin’s fluctuating value, which significantly impacts shareholder sentiment and the company’s stock performance.
• Notably, MARA aligns with the view of Bitcoin as a macro hedge, comparable to gold, which is particularly relevant amid volatile market conditions.

• Cisco Systems, Inc. exhibited robust performance in its third quarter of fiscal year 2025, surpassing revenue, margins, and earnings expectations.
• The company reported total revenue of $14.1 billion, marking a substantial 11% year-over-year increase.
• This growth was driven by significant expansion in product revenue, especially in areas such as networking, which saw an 8% increase, and security, which surged by 54%, primarily due to contributions from Splunk and SASE offerings.

• JFrog’s Q1 2025 financial results reflect both accomplishments and ongoing challenges.
• The company reported total revenue of $122.4 million, up 22% year-over-year, driven significantly by strong cloud revenue which rose by 42% to $52.6 million.
• This growth underscores JFrog’s strategic focus on cloud solutions and enterprise migrations toward its SaaS offering.

• Expedia Group’s recent financial results for Q1 2025 present a complex blend of performance metrics that reveal both strengths and areas of concern.
• The company’s gross bookings climbed by 4% to $31.5 billion, while revenue increased by 3% to $3 billion, aligning with expectations but reflecting a modest growth trajectory.
• The growth has been hampered by weaker travel demand within and into the U.S., despite strong performances elsewhere.

• Dynatrace reported a robust performance for the fourth quarter and full fiscal year 2025, showcasing significant accomplishments across various key metrics.
• The company’s subscription revenue experienced a 20% increase, reaching $1.62 billion, while the Annual Recurring Revenue (ARR) stood at $1.73 billion, marking a 17% growth.
• The non-GAAP operating margin expanded by over 100 basis points, and the pre-tax free cash flow margin improved by roughly 250 basis points, underlining the company’s effective balance between growth and profitability.

• dLocal delivered a first-quarter 2025 result that showcased both strong financial performance and ongoing strategic advancements, accompanied by notable business developments and challenges.
• The total payment volume (TPV) reached $8.1 billion, marking a significant 53% growth year-over-year, which further increases to 72% in constant currency terms.
• This growth was led by robust performance in cross-border payments, particularly in regions like Chile, Pakistan, Nigeria, Turkey, and Brazil across sectors including remittances, commerce, and financial services.

• Installed Building Products (IBP) reported its first quarter 2025 financial results, reflecting mixed performance amidst a challenging macroeconomic landscape affecting the construction industry.
• The company’s performance was impacted by housing market dynamics and adverse weather conditions, although strategic initiatives and a strong operating framework provided some balance.
• On the positive side, IBP maintained a solid financial base with significant cash flow, highlighting its capacity for growth via acquisitions.

• DaVita Inc. (DVA) has recently disclosed its financial results for the first quarter of 2025.
• The company faced significant challenges, most notably a cybersecurity incident, which disrupted operations.
• Despite these setbacks, DaVita succeeded in maintaining its patient care levels and mitigating the impact on its core services.

• TSMC: +22% Premium; Consider Shorting ADR Spread at Current Level
• UMC: -1.4% Discount; Wait for More Extreme Discount Before Going Long the Spread
• CHT: +0.9% Premium; Can Consider Shorting the Premium at This Level or Higher

• Samsung 3nm yields improving (50-60%) but still far behind TSMC (85-90%)
• SK Hynix is finalizing HBM4 agreements with Nvidia, Samsung is still not qualified for HBM3e.
• Huawei into semiconductor chemicals? The vulnerability is photo-resist, but that’s very hard to do 

• Texas Roadhouse reported its first quarter financial results, demonstrating both strengths and challenges in its business performance.
• The company recorded a revenue of over $1.4 billion, with same-store sales increasing by 3.5% and average weekly sales reaching all-time highs.
• Notably, March experienced the highest weekly sales across Texas Roadhouse’s three brands: Texas Roadhouse, Bubba’s 33, and Jaggers.

• Operating Business did well with filing revenues marginally declining and food ware business growing
• One off write off investment in associate and intangible asset
• Maintain the view that Risk Reward are asymmetrical as the company trades below cash

• Cloudflare reported its financial performance for Q1 2025, showcasing several encouraging outcomes along with some aspects that warrant attention.
• The company achieved a revenue of $479.1 million, marking a 27% increase year-over-year.
• This growth was primarily driven by the addition of large customers, with 3,527 clients contributing over $100,000 annually—a 23% year-over-year rise.

• In this insight, we provide 3 major fundamental criteria for screening major Korean F&B companies. 
• Three major criteria include 3 years CAGR revenue growth of 5% or more, increase in net margin in 2024, and overseas sales more than 10% of total sales.
• Of the 30 Korean F&B companies mentioned in this insight, only six companies meet these criteria including Samyang Foods, Orion Corp, Hitejinro, Lotte Wellfood, Daesang Corporation, and Pulmuone.

• Carvana Co.’s latest earnings for Q1 2025 highlighted several key achievements as well as ongoing challenges.
• The company reported robust growth across several financial metrics, reflecting the effectiveness of its business model in a competitive and fragmented automotive retail industry.
• On the positive side, Carvana achieved record retail units sold at 133,898, representing a 46% increase year over-year.

• Paramount Global’s Q1 2025 financial results presented a mixed picture of the company’s performance and strategic positioning.
• On the positive side, Paramount reported a 2% revenue growth, when excluding the Super Bowl, alongside a significant year-over-year improvement in Direct-to-Consumer (DTC) OIBDA by approximately $180 million.
• The company also generated $123 million in free cash flow, demonstrating efficient cash management amid a challenging advertising environment.

• Royalty Pharma PLC’s recent earnings results for the first quarter of 2025 outline a period of significant financial performance and strategic initiatives.
• The company reported a 12% increase in royalty receipts, demonstrating solid cash flow stemming from its diversified portfolio.
• Total portfolio receipts grew by 17%, boosted by variable milestones and contractual payments, indicating a strong top-line performance.

• HubSpot reported strong financial results for the first quarter of 2025, reflecting continued growth and strategic momentum.
• Revenue increased by 18% year-over-year in constant currency, driven by several key trends.
• The company added over 10,000 net new customers, bringing its total customer base to 258,000, with customer growth driven by platform consolidation, upmarket expansion, and robust downmarket acquisition.

For our next Corporate Webinar we are glad to welcome Sasseur REIT’s CFO, Mr. Xie Jianfeng, Head of Asset Management, Mr. Cheng Hsing Yuen, and Head of Investor Relations & Capital Markets, Ms. Helen Qiu.

In the upcoming webinar, the Sasseur REIT team will share a short company presentation after which, they will engage in a fireside chat with Smartkarma Insight Provider, Garreth Elston. The Corporate Webinar will include a live Q&A session.

The Corporate Webinar will be hosted on Wednesday, 25 June 2025, 16:30 SGT.

About Sasseur REIT

Sasseur REIT is the first retail outlet mall REIT listed in Asia. Sasseur REIT offers investors
the unique opportunity to invest in the fast-growing retail outlet mall sector in China through
its initial portfolio of four quality retail outlet mall assets strategically located in fast-growing
Chinese cities such as Chongqing, Kunming and Hefei, with a combined net lettable area of
310,241 square metres.

Sasseur REIT is established with the investment strategy to invest principally, directly or
indirectly, in a diversified portfolio of income-producing real estate which is used primarily for
retail outlet mall purposes, as well as real estate-related assets in relation to the foregoing,
with an initial focus on Asia.

You can view their latest factsheet here.

For more information on Sasseur REIT, please visit http://www.sasseurreit.com/

• Mazda leaped upward with other Auto companies following a Court of International Trade ruling that nullified Trump’s reciprocal tariffs but left auto tariffs at 25%.
• The CIT has historically given presidents much more leeway on rules that the auto tariffs fall under, so challenges to these tariffs are less likely to succeed.
• The tariff threat to Mazda is existential, and in our view, consensus forecasts have not even begun to appreciate this.

• NVIDIA reported Q1FY26 revenues of $44.1 billion, up 69% YoY and up 12% QoQ
• NVIDIA forecasted current quarter revenues of $45.0 billion, marginally up QoQ and weighed down by the loss of around $8 billion in previously anticipated H20 revenues
• Does China really wish to remain reliant on US infrastructure/platforms for its AI build out indefinitely? I think not. Gradually losing China market was inevitable, even without US restrictions.

• MNSO reported 1Q25 rev. in line with cons. but non-GAAP op. profit 17% below and GAAP net income 33% below cons, 
• We view MNSO’s store expansion as being below its bar of quality. Downside risks were not fully priced in. Our 2025 revenue/net profit forecasts are 7.0%/8.2% below consensus;
• We cut the TP from US$16 to US$13.5/ADS and keep the SELL rating.

Mammoth Energy (Tusk) has undergone a transformation and is a potentially undervalued small cap stock with limited downside

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

• Nippon Steel targets over 100 Mt capacity by 2030, focusing on global growth as Japan’s domestic demand shrinks.
• It plans to acquire U.S. Steel for $14.9B and expand in India via AMNS joint ventures.
• FY24 profit rose 36%, but export reliance, ESG lag, and U.S. deal hurdles pose risks.

• The Industrial Bank Of Korea (024110 KS)/ Woori Financial Group (316140 KS) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• The relative value opportunity can be implemented through stocks, derivatives, or as relative over-/underweights in a long only context.
• This Insight discusses trade setup, statistical properties, factor exposure, and risk management strategies.

• Occidental Petroleum’s recent earnings call for the first quarter of 2025 presented a mixed but detailed view of the company’s operational and financial performance, showcasing both strengths and challenges.
• The management highlighted a solid execution across its diversified portfolio, despite facing some market headwinds and external uncertainties.
• On the positive side, Occidental generated $3 billion in operating cash flow before working capital adjustments, maintaining oil and gas production at just over 1.39 million barrels of oil equivalent per day, which aligns with their guidance.

• Sarda’s near-term growth will be driven by the full-year contribution from SKS Power, boosting earnings visibility.
• The business mix is shifting structurally from steel to power, which now contributes over 60% of EBIT. Low leverage at <1x EV/EBITDA is a positive.
• The recent weakness in spot power prices is seen as temporary; at 15x FY27 EV/EBITDA, the stock offers strong upside.

• Globus Spirits continues its strategic pivot towards high-margin consumer business, with P&A revenue up 186% in FY25 and Regular & Others up 17%.
• The manufacturing segment’s margins are stabilising due to favourable government ethanol policies and raw material availability, enhancing overall profitability.
• This shift, coupled with significant investments in the key Uttar Pradesh market and near completion of major capex, positions the company for continued profitable growth, reinforcing a positive view.

• Jensen claims his Taiwan expansion is just about needing more chairs, yet an NVIDIA blog post describes the Santa Clara HQ taking to the skies & landing in Taiwan. 
• He was critical of US restrictions on China chip exports while in Taipei, yet had nothing to say on the topic while in the White House or the Middle East
• NVIDIA’s market share in China is down from 95% in 2022 to 50% now, yet the country continues to challenge global AI leadership. That puts NVIDIA in an awkward spot.

• Metaplanet, the Tokyo-listed firm modelling itself after MicroStrategy, continues to rapidly expand its Bitcoin holdings.
• For now, equity markets are playing along. Metaplanet’s share price has surged 30% in the past week
• But with the firm trading at nearly 6x its net asset value, market enthusiasm looks stretched

• Large impact of H20 discontinued sales to China. Including the impact, 1-2Q26 are inline with consensus. Adding back the H20 missed revenues, 1-2Q26 would have been ~10% above Consensus. 
• The ramp of GB200 is very impressive, demonstrating Jensen’s point: “it drives down cost and improves quality of response with higher speed”. The Good Times Keep Rolling.
• This means that Consensus most likely does not need to revise down FY26 forecasts. This means that the stock is cheap-ish, trading at 31x FY26 EPS and 24x FY27.

• AZEK recently shared its second-quarter fiscal 2025 financial results, highlighting both positive performances and notable challenges.
• The quarter saw consolidated net sales grow by 8% year-over-year to $452 million, while the residential segment led growth with a 9% year-over-year increase in net sales.
• This robust performance was driven by mid-single-digit sell-through growth and continued expansion in product lines such as TimberTech and AZEK Exteriors.

• Novo Nordisk A/S reported its financial results for the first quarter of 2025, showcasing strong growth across its operations, though facing certain challenges.
• The company delivered an 18% increase in sales and a 20% growth in operating profit, reflecting robust demand for its diabetes and obesity treatments.
• These positive results underscore the company’s ongoing market leadership, with approximately 46 million patients currently benefiting from its treatment solutions.

• AppLovin, a leader in performance marketing, has recently announced its first-quarter 2025 financial results, highlighting its robust growth trajectory despite external challenges.
• The company has navigated market volatility, such as short-seller scrutiny and broader economic conditions, by focusing on emerging opportunities in the advertising sector.
• This quarter is especially significant due to its strategic decision to divest its games business entirely, further sharpening its focus on advertising technology.

• Deepak Fertilisers & Petro (DFPC IN) reported robust Q4 and full-year FY25 results, crossing INR 10,000 crores in revenue and doubling PAT year-on-year for FY25.
• The strong financial outcomes validate the company’s strategy of aligning with India’s growth story and transitioning from commodities to higher-margin specialty products.
• Improved financial health, reduced net debt, and strategic capex nearing completion position DFPCL for future growth and potentially higher profitability despite near-term segment-specific pressures.

• China represents ~11% of revenues for Cadence and Synopsys. The weight of China has been declining. 
• China has a number of startup working on replacement software, the leader is Empyrean – good but some years behind Cadence and Synopsys and focused on legacy chip design. 
• Between this news today and more restrictions on Nvidia’s sales to China, it looks like more US restrictions will come.

• Uber Technologies’ Q1 2025 earnings call provided insights into the company’s performance, operations, and strategic outlook.
• The results reflected robust growth across key metrics, albeit in a competitive and dynamic environment.
• Here’s a synopsis of the key points from the call, reflecting both strengths and challenges faced by the company.

• Walt Disney’s second-quarter 2025 earnings report was met with a wave of investor enthusiasm, driving the stock up 11% to over $102.
• This optimism was not only driven by stronger-than-expected financials but also by the high-profile announcement of a new theme park in Abu Dhabi.
• The planned park marks Disney’s seventh globally and is set to be developed in collaboration with the Miral Group.

• April 2025, the US Gvt extended restrictions on Nvidia’s China-specific H20 chip. Restriction also apply to H20’s memory bandwidth. This means SK Hynix HBM and TSMC CoWoS.   
• Nvidia new China-specific chip derive from this: a downgraded chip, half a Blackwell, without HBM-CoWoS packaging. Time to design, manufacture, could lead to ~15% downside risk to FY26 Consensus?   
• FY26 revenues could land at US$175bn or  -12% below Consensus at 199bn. $175bn implies 35% growth YoY, Consensus expects 52%. The stock trades at “low” 30x FY26 and 24x FY27.

• The four largest convenience stores all had varying results last year, two setting records for high profits, and the other two seeing worrying shortfalls. 
• The biggest differentiating factor was how each handled the problem of inflation, either through lower prices or by offering added value.
• Unfortunately, Seven Eleven was the worst performer of the big three, still suffering from a price perception problem and lower levels of innovation compared to Lawson and Familymart.

• In a turbulent 2025, Netflix has emerged as one of the most closely watched tech stocks, not just for its market performance but also for its evolving business strategy.
• The streamer’s share price is up over 30% year-to-date, nearing a $500 billion market cap, outpacing the broader S&P 500 by a wide margin.
• Amid global macro uncertainty and shifting consumer behavior, Netflix is experimenting aggressively — hosting live NFL games, expanding into gaming, leveraging artificial intelligence in content production, and responding to a proposed 100% tariff on foreign-produced films.

• Globalwafers (6488 TT) held its shareholders’ meeting yesterday (May 26th).  
• Regarding the U.S. market, Globalwafers (6488 TT) noted that the U.S. government will impose tariffs on imported products, although the specific rates are still unknown.  
• Regarding the overall market conditions, the 12-inch silicon wafer market is currently performing significantly better than the 8-inch market, with higher utilization rates.  

• Looking ahead to the second quarter, Silergy Corp (6415 TT) did not provide specific guidance targets but emphasized that uncertainty in customers’ decisions regarding chip production locations could impact seasonal demand.  
• Despite short-term challenges, Silergy Corp (6415 TT) still anticipates 2025 to be a year of growth.  
• In terms of profitability, Silergy Corp (6415 TT) expects that capacity at Chinese foundries will approach full utilization, leading to supply chain tightness and helping maintain stable gross margins.

• May is a result season, and hence, very few companies that are out of their silent period are eligible to permit insider trading activity
• Sectors with notable activity include real estate, financials, media and renewable energy.
• Most of these stocks are close to same price levels where the insider purchases happened.

• Alphabet Inc. (NASDAQ:GOOGL) has entered a defining phase in its AI journey, unveiling a host of advanced technologies and product integrations that mark its most aggressive push yet into artificial intelligence.
• At the heart of this transformation is Gemini 2.5 Pro, the company’s most advanced AI model, now powering everything from Search and mobile assistants to developer platforms and multimodal queries.
• The rollout of AI Overviews, which now serves over 1.5 billion monthly users, and the launch of AI Mode, capable of handling more complex search tasks, underscore Alphabet’s commitment to redefining user experience through AI.

• Google’s Pixel Chips to Go All-In on TSMC After Using Samsung Foundry Previously
• TSMC (2330.TT; TSM.US): TSMC Provides Updates at 2025 Technology Symposium in Hsinchu Today. 
• GlobalWafers (6488.TT): Shareholders’ Meeting Held; US Tariff Effects Pending; SiC Chances Ahead. 

• Zen Technologies (ZEN IN) reported record-high quarterly and annual financial performance in Q4 & FY25, surpassing internal guidance for the year. Strategic acquisitions in naval simulation, drone components& robotics completed.
• The strong financials and acquisitions significantly diversify capabilities and market reach, positioning Zen to capitalise on increasing defence spending and evolving warfare needs.
• Performance exceeds expectations, reinforcing confidence in Zen’s indigenous technology leadership and growth trajectory, despite potential short-term order inflow volatility.

• Pinduoduo sees one of the steepest ownership drops in EM funds, with 95 net sellers and 28 closures in six months.
• Major closures from Aubrey, AllianceBernstein, UBS, and BNP Paribas; largest outflows from Fidelity and BlackRock.
• Despite sharp declines, PDD remains in 36.5% of GEM funds and a top 10 holding in China & HK.

• In 1Q25, total revenue grew by 18% YoY, with main businesses up by 20% YoY.
• The operating margin rose by 3.6 ppt YoY by cutting every cost in 1Q25.
• We expect EPS will grow by 37% in 2025 and the stock has an upside of 48%.

• Thai Beverage (THBEV SP) share price has been quite beaten down in the last few years and has not recovered since COVID.
• A few near-term catalysts that could revive the share price i.e. government subsidies for tourist flights, Chinese tourists are back, and the lifting of the alcohol sales ban in afternoon.
• Cheapest earnings multiple, pays higher dividend yield, high ROE, and also generated USD 420 million free cash flow. 

• UOI received much media attention when a minority shareholder group attempted to push the company to distribute its Haw Par shares and appoint a financial advisor to unlock shareholder value.
• Although the Board dismissed the request due to the failure to meet statutory requirements, the ownership structure between UOI, UOB, Haw Par, and Wee family remains a valid concern.
• UOI has underperformed the broader market over the past 5 years; the key to management is how it can grow from a mid-sized local insurer to a leading regional one.

• TransDigm Group Inc.’s recent earnings discussion sheds light on both its strengths and challenges, providing insights into the company’s ongoing strategies and performance outlook.
• During the second quarter of fiscal 2025, TransDigm reported strong operational performance with significant contributions from its commercial aftermarket and defense market channels.
• Revenue from these divisions displayed healthy growth, while commercial OEM revenues remained largely flat compared to the previous year, indicating an area of potential improvement as production recovers from past disruptions.

• Regarding Datadog’s Q1 2025 financial results, the company reported a solid performance with a revenue of $762 million, representing a 25% year-over-year increase.
• This figure surpassed the high end of their guidance.
• Datadog revealed a customer base of approximately 30,500, with about 3,770 customers having an Annual Recurring Revenue (ARR) of $100,000 or more, accounting for 88% of ARR.

• Jubilant Ingrevia has launched its “Pinnacle 3.4.5” strategy targeting 3x revenue and 4x EBITDA growth by FY30, signaling a focused shift toward higher-margin segments.
• The company’s business mix is rapidly evolving, with Specialty Chemicals and Nutrition now contributing 62% of revenue, improving margin visibility and reducing cyclicality.
• With increasing downstream integration, global CDMO expansion, and a robust R&D pipeline, Jubilant Ingrevia is transitioning into a structurally higher-margin, innovation-driven player.

• Linde India plans to double gas capacity to 20,000 TPD by FY27 with ₹32 bn capex, including new ASUs for Tata Steel.
•  FY25 PAT rose 5% despite a 10% revenue dip, driven by margin gains and cost efficiency.
• Trades at over 80× P/E FY27, appears justified by annuity-like cash flows from critical long-term contracts with top steelmakers.

• Advanced Micro Devices (AMD) delivered a robust start to 2025, reporting stronger-than-expected earnings that reinforced the company’s growth trajectory in high-demand areas like AI and data centers.
• The semiconductor firm posted first-quarter adjusted earnings per share of $0.96, slightly above Wall Street’s estimate of $0.94, with total revenue hitting $7.4 billion, surpassing the projected $7.1 billion.
• This performance was fueled by the impressive 57% year-over-year growth in AMD’s Data Center segment, which reached $3.7 billion.

• The first quarter of 2025 results for Fidelity National Information Services, Inc. (FIS) demonstrated both operational progress and strategic initiatives that position the company robustly for future growth.
• The revenue growth for the quarter was 4%, with a significant acceleration in recurring revenues, indicative of a resilient business model that thrives across different economic conditions.
• The quarter was marked by strategic structural changes, notably the announced acquisition of Global Payments’ issuer business and the sale of a minority stake in Worldpay.

• Super Micro Computer shares experienced their steepest decline in months after the company released preliminary third-quarter fiscal 2025 results that came in well below Wall Street expectations.
• SMCI stock fell 14% to $30.96, marking its largest one-day drop since late February.
• The artificial intelligence server maker reported revenue between $4.5 billion and $4.6 billion and adjusted earnings per share of $0.29 to $0.31, significantly below analysts’ forecasts of $5.4 billion in revenue and $0.53 EPS.

• Aegis Vopak Terminals is raising Rs2,800 crore via a fresh issue to repay debt and fund expansion, marking its transition into a listed infrastructure platform.
• LPG capacity is set to triple by FY26, with new industrial terminals planned under a Rs4,500 crore capex; revenue and EBITDA are projected to grow 20–25% CAGR through FY27.
• Key risks include high dependence on group entities for revenue, delayed utilization of new capacity, and exposure to regulatory or energy demand shifts affecting LPG and chemical flows.

• Tongcheng Travel Holdings (780 HK)‘s 1Q25 adjusted net profit surged 41.1%, suggesting an accelerating momentum. It should continue to outperform Trip.com Group (9961 HK). 
• Good cost management, even as revenue rose 13.2%, has enhanced adjusted EBITDA margin by 5.3pp YoY – this trend will sustain. 
• More visa convenience will boost inbound and outbound travel. At end-1Q25, net cash equals 14% of market capitalisation, and it can still generate ROE of 12-15%. 

• Fabrinet has reported strong results for the third quarter of fiscal year 2025, which ended on March 28, 2025.
• The company achieved a revenue of $872 million, surpassing its guidance range, and non-GAAP earnings per share stood at $2.52, also above expectations.
• This performance highlights Fabrinet’s robust execution capabilities, especially in the optical communications sector where telecom revenue demonstrated significant growth, counterbalancing a predicted decline in datacom revenue.

• Guangdong Investment (270 HK) exposure in water distribution provides the much-needed stability (low volatility). While its Real Estate exposure could provide some growth.
• With low valuation and healthy dividend yield, owning GDI during the tumultuous period will provide healthy diversification for your portfolio and a hedge during Trump’ tariff period.
• The water sector is undervalued, mainly due to the characteristically low growth, but free cash flow is generally quite strong yet undervalued. GDI generated USD 1.3 bn Free cash flow.

• Ashok Leyland (AL IN) posted 38% YoY PAT growth in Q4, driven by cost efficiency, premium product mix, and strong EBITDA margin improvement.
• HLF IPO and Switch India’s PAT target for FY26 positions for significant value unlocking and improved subsidiary contribution.
• CV demand, export momentum, and alt-fuel investments support a strong FY26 outlook, with valuations supported by improving profitability and resilient balance sheet. 4o

• NALCO has guided for alumina realizations around $400/t in FY26, with earnings further impacted by delays in ramp-up of its 1 MTPA alumina expansion project.
• Q4 FY25 results were strong, but earnings outlook has weakened significantly with the steep drop in alumina prices.
• Valuations appear inexpensive on FY27 earnings at 5x EV/EBITDA, however peristent delays in capacity rampup is concerning. 

• Jade Group (3558 JP) made some wild promises about its potential to grow its online fashion mall business last year when it acquired Magaseek. 
• But recent results suggest what many feared: building scale without due regard for the quality of the assets acquired does not an empire make.
• With Magaseek contracting and e-commerce overall showing muted growth, Jade Group´s capacity to escape the shadow of the big three looks limited.

• Empire Energy Group Limited (ASX:EEG) is a gas development company, with onshore Northern Territory (NT) gas exploration and development assets.
• EEG has the largest tenement position in the highly prospective Greater McArthur Basin, which includes the Beetaloo Sub-basin.
• Having successfully completed a $27.75m equity capital raise, with an additional $3.25m subject to shareholder approval and SPP take-up, the company should be funded through to first gas from the Carpentaria Pilot Project by around end-2025.

• It recently became publicly available that Michael Burry (CEO of Scion Asset Management) started buying put options on numerous Chinese stocks including Alibaba Group Holding (BABA US).
• We highlight four major reasons why Burry may have turned bearish on Chinese tech names (tariffs, delisting threats, increasing hostile political pressure on China, and China’s 30 year bond yield). 
• Although we do not know exactly know how Burry has changed his position in 2Q25, he is likely to have reduced put options on major Chinese tech stocks in April/May.

• The U.S. Department of Commerce’s Bureau of Industry and Security (U.S. BIS) recently released a series of public consultations regarding Section 232 related to semiconductors.  
• TSMC stated that any import measures should not create uncertainty for existing semiconductor investments.
• Any measures taken by the U.S. government should not undermine the national security policy objectives of the U.S. government, including advanced semiconductor production at TSMC Arizona.

• BioMarin Pharmaceutical reported strong first-quarter financial results for 2025, marked by a 15% increase in total revenue to $745 million compared to the prior year.
• This growth was significantly driven by VOXZOGO, which generated $214 million, a 40% year-over-year increase, demonstrating continued demand for the achondroplasia treatment.
• Additionally, the enzyme therapies business unit grew by 8%, bolstered by a 22% increase in PALYNZIQ revenues.

• Palantir Technologies entered 2025 with first-quarter results that underscore both the power of its artificial intelligence portfolio and the hurdles that still shadow its global ambitions.
• Revenue climbed 39% year over year to roughly $1.02 billion, led by a 55% jump in the United States, where commercial sales surged 71% and government revenue rose 45%.
• Management highlighted that U.S. commercial activities have crossed a $1 billion annualized run rate and that uptake of its new Artificial Intelligence Platform is “racing ahead” across healthcare, financial-services, and industrial clients.

• Leonardo DRS demonstrated a strong performance in the first quarter of fiscal year 2025, with financial metrics surpassing initial expectations.
• The company registered organic growth of 16% in revenues, with a significant book-to-bill ratio of 1.2 and a record backlog of $8.6 billion.
• This quarter marks the 13th consecutive quarter with a book-to-bill ratio over 1, underpinning strong demand across a diversified portfolio of products, including advanced infrared sensing, electric power and propulsion, and tactical radars.

• Shake Shack’s recent quarter results indicate a dynamic period for the company, showcasing both substantial progress and areas with potential challenges.
• The company has positioned 2025 as a transformative year, beginning with an ambitious expansion strategy to increase the number of company-operated Shacks to at least 1,500.
• This expansion will demand strong leadership and innovative strategies, with a focus on enhancing the guest experience, operational efficiency, and margin improvements.

• Floor & Decor Holdings reported its fiscal 2025 first quarter results, offering an insightful view into its strategic positioning and operational efficiencies amid a challenging economic landscape characterized by high volatility and uncertainty.
• The company delivered diluted earnings per share (EPS) of $0.45, slightly down from $0.46 in the same period last year, but still surpassing the lower end of its expectations despite a decline in comparable store sales.
• Total sales showed a 5.8% increase, reaching $1.161 billion compared to $1.097 billion in the previous year.

• Itron’s first quarter of 2025 financial results demonstrated a robust performance characterized by strong margin expansion and earnings growth that surpassed expectations.
• The company delivered a revenue of $607 million with an adjusted EBITDA of $88 million, indicating a solid operational quarter.
• Non-GAAP earnings per share reached $1.52, representing a substantial year-over-year increase, while free cash flow doubled from the previous year to $67 million.

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

• Arrow Electronics has presented several key financial outcomes and operational insights in its first quarter of 2025 results.
• The company reported consolidated sales of $6.8 billion, which exceeded the upper range of its guidance.
• Results showed that while global components sales were slightly down by 1% year-over-year at $4.8 billion, the Enterprise Computing Solutions (ECS) segment saw a notable 18% year-over-year increase in sales to $2 billion, indicating strong performance particularly in cloud and hybrid cloud technologies, and infrastructure software.

• Mercedes-Benz Group (MBG GR)’s EBIT fell 30% in 2024 and another 24% in Q12025; management expects significantly lower earnings &free cash flow in 2025 amid rising capex, weak pricing and tariffs
• China & JV Risk: 34% of units sold in China yield limited profit. EV price wars and slowing demand in the region continue to erode margins.
• Valuation Trap: Despite a low P/E (~8x FY25e), high dividend yield (~8%), the cheap valuation may be unsustainable as structural pressures mount from tariffs, EV transition costs, and falling RoS.

• Schloss Bangalore’s Rs3,500 crore IPO includes a Rs2,500 crore fresh issue largely earmarked for debt repayment, with limited allocation toward growth investments.
• The company operates 13 ultra-luxury hotels under The Leela brand, delivering premium ARR and F&B-led revenue, but with relatively modest scale versus larger peers.
• While expansion plans are underway with 678 new keys by FY28, the IPO is priced at a rich ~12x EV/Sales—significantly above Oberoi’s ~8x, despite being half its size.

• Alibaba Cloud is doubling down on globalization with a bold new strategy and 380-billion-yuan ($52.7 billion) investment plan aimed at creating a unified global cloud network and accelerate the international rollout of its AI offerings.
• The initiative seeks to establish Alibaba Cloud as the digital backbone for China’s next generation of global companies.
• Speaking at the Alibaba Cloud “Go Global Summit” on Thursday, Wu Yongming, Alibaba Group CEO and Alibaba Cloud chairman, said China’s globalization is entering a new era — one led not just by product exports but by the global rise of Chinese technology, brands and advanced manufacturing.

• After four years of behind-the-scenes development, Xiaomi has officially joined the top tier of smartphone chipmakers with the launch of its first in-house 3-nanometer system-on-chip (SoC), the Surge Xuanjie O1, along with its first self-developed 4G baseband chip, the Xuanjie T1.
• The announcement came during the company’s product launch event in Beijing on Thursday, where Xiaomi also introduced its new flagship phone 15s Pro and 7Ultra tablet — both powered by the Xuanjie O1— as well as a smartwatch using the T1 chip.
• The Xuanjie O1 is built using TSMC’s second-generation 3nm N3E process the same advanced node used in Apple’s A18 chips and Qualcomm’s Snapdragon 8 Elite.

• In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks (23 May to 6 June 2025).
• Our top 10 picks were up on average 2.4% in the past two weeks (from 9 to 23 May), outperforming KOSPI which was up 0.6% in the same period.
• The top 10 picks in this bi-weekly include Samsung Securities, LG Uplus, Amorepacific Holdings, Samsung C&T, JYP Entertainment, Nongshim, Krafton, LS Electric, F&F, and Emart. 

• Huawei Technologies Co. Ltd. unveiled its first personal computers Monday in Chengdu, with machines powered by the company’s self-developed chips and HarmonyOS operating system in a direct challenge to the long-standing dominance of Windows-Intel (Wintel) and Apple’s macOS technology.
• The MateBook Fold, priced from 23,999 yuan ($3,328), features an 18-inch foldable screen and a split keyboard, while the lighter MateBook Pro, starting at 7,999 yuan, follows a more conventional laptop design with a 14.2-inch display.
• Huawei did not disclose the specific chip used in either model, but industry observers believe the devices are equipped with the company’s Kirin X90 processor built on an Arm architecture.

• Xiaomi has its own smartphone chip! It’s the 4th announcement (2014, 2017, 2021, 2025)? Yes it is. Why it didn’t succeed before, will it work out now? It won’t.
• Mobile chip development costs US$800m-1bn, to be amortized on Xiaomi’s small volumes. The economics don’t work. It won’t give Xiaomi any performance / differentiation benefits.  
• Why now? Computex was ongoing in Taipei with 10 big-size CEOs, Nvidia, AMD, Qualcomm, Mediatek, TSMC… maybe they felt lonely in Beijing? If you bought Xiaomi, please sell.

• The Samsung Fire & Marine Insurance (000815 KS) vs. Woori Financial Group (316140 KS) Price-Ratio has deviated two standard deviations from its one-year average, highlighting a potential tactical opportunity.
• Statistical and fundamental arguments are provided for and against a relative value trade in this pair that derives from two different industries.
• Trade setup, statistical properties, factor exposure, risk management strategies, and key events are discussed.

Dentsu Group’s Q125 figures show 0.2% organic net revenue growth and an improvement in operating margin. Japan performed well, with international operations more challenged. Dentsu’s new management plan aims to drive profitability and competitiveness, particularly ex-Japan. It targets up to ¥50bn of operating cost reductions, returning the group to consistent profit growth from FY27. The ¥50bn cost of reshaping the group weighs on FY25 profits but should result in a simpler organisation. A further ¥45bn will be invested over three years with the aim of no markets being loss-making by FY26. The group will focus on the key Japanese and US markets, with the international business centred on adding value to Dentsu’s existing strengths in media. The goal is to achieve a mid-teens return on equity by the plan’s completion.

• IDEX Corporation recently reported its first-quarter results for 2025, outlining both positive performances and areas of challenge.
• The company exceeded expectations across revenue, profitability, and adjusted earnings per share, thanks to incremental cost savings and strategic price adjustments.
• This highlights IDEX’s effective operational management, despite an environment marked by policy-driven uncertainties, such as newly introduced tariffs.