Equity Bottom-Up

• TSMC (Taiwan Semiconductor Manufacturing) (2330 TT) enjoys a near-monopoly status in the N2 and N3 advanced foundry nodes. 
• Investors should not expect the management to actively buy back its shares; instead, they should expect high growth numbers from TSMC.
• Despite the relatively high PER and PBR, its PEG ratio is 0.6x, thanks to the high growth numbers that make its valuation level still compelling. 

• Physical capacity at Haneda Airport is structurally capped at approximately 490,000 slots per year, forcing Japan Airport Terminal (JAT) to pivot from volume-driven expansion to a qualitative growth model under its FY2026–FY2030 Medium-Term Management Plan.
• The $350 million secondary offering announced on August 24, 2026, marks a massive cross-shareholding unwind by commercial banks and minor corporate partners; JAT’s simultaneous 15 billion Yen share buyback (scheduled for October 2026–March 2027) is a defensive mechanism to absorb the resulting supply shock, only covering roughly 35% of the offered shares.
• While JAT captures high margins on wholesale domestic products and souvenirs, its bargaining power with global luxury conglomerates remains structurally constrained; luxury houses dictate low concession commission rates (typically around 20-30%) and control product allocation, leveraging the threat of shifting demand to downtown tax-free districts or neighboring regional hubs like Incheon or Singapore.

• Unicharm Indonesia’s last 2 quarterly results have shown signs of turnaround. Part of this turnaround is due to accounting changes. 
• The company has now started focusing on feminine care as it believes that’s where it has strong brand and pricing power. 
• Diapers’ focus is to revitalize growth by improving trade channels, especially e-commerce. Petcare is small but growing fast.

• Augmont Enterprises opened its INR 825 crore IPO on August 21, 2026, at a INR 750–INR 788 price band, valuing the bullion platform near INR 7,200 crore.
• It is India’s first listing of an integrated gold-and-silver B2B trading and refining platform, offering rare public exposure to bullion flow rather than jewellery retail.
• Explosive top-line growth and a debt-free balance sheet compete against wafer-thin margins, heavy customer concentration and idle refining capacity, detailed below.

• In this insight, we discuss the key reasons which led Yadea (1585 HK) to poor results in H1FY2026.
• We also discuss the outlook for H22026 and key risks to it.
• Finally, we discuss on valuation and our view on the company.

• App Store Margin Resilience: Apple’s recent transition to a modular EU App Store fee structure—retiring the Core Technology Fee for a flat 5.00% Core Technology Commission on external transactions starting October 1, 2026—proves the “Services margin collapse” thesis is overblown. By layering fees (up to 26.00% inside the store and 15.00% to 20.00% for alternative options), Apple continues to defend a 75.60% Services gross margin.
• Pragmatic AI Monetization: Instead of a standalone OpenAI-style SaaS model, Apple is leveraging iOS 27 (releasing September 2026) to monetize Apple Intelligence through tiered iCloud+ subscriptions. By capping daily usage limits on server-side AI compute, Apple will push power users onto higher paid iCloud tiers starting at $0.99 to $10.99+ per month, offsetting massive private cloud node CAPEX while capturing recurring revenue.
• The India Supply Chain Hedge: The “China+1” strategy achieved a critical milestone with India assembling 25.00% of global iPhones in 2025 (tracking toward 28.00% in 2026). While local component sourcing challenges and logistics create gross margin friction, India’s $62,500-crore Mobile Phone Manufacturing Scheme (offering 2.25% to 5.00% cash incentives) keeps long-term COGS stable and insulates Apple against potential 55.00% US tariffs on Chinese-made units.

• Terra Drone has invested in its two Ukrainian partners, turning them into consolidated subsidiaries. It can now be regarded as an active participant in the Ukraine war.
• The company remains in the red, but the bonds with warrants issue made in July should cover capital spending through January 2030. By then, it should break even. 
• At ¥14,050, the shares are approaching their May high. As a result of the financing, the PBR has dropped from 29X to 7X,

• Total revenue grew by 16% YoY and tea revenue grow by 30% in 1H26.
• The gross margin is about 61%, only next to Coca-Cola.
• We believe the stock has an upside of 28% for the year end 2027.

• ENR should do 15.4% EBITDA margin in FY26 versus GEV at 13.6%, or 180bps higher.
• Also remember that ENR has a 100bps penalty from the Siemens AG royalty payments that will sunset in a few years and so the real margin delta is actually 280bps.
• Far higher margin.

• 1H result was mixed; revenue went up, but operating income was -57% YoY caused by EV margin contraction. 
• Tesla (TSLA US) shut down its solar roof tiles, which was supposed to be a high-margin business due to a variety of reasons, including phasing out of Clean Energy Credit. 
• It has set a date for the Cybercap launch 3rd Sept 2026 that will push the share price up. Cover some of your short now to lock in your profit.

• I discuss a trading strategy for Shein which starts trading in Hong Kong on 1 September. My base case valuation of Shein is target price of HK48.2 per share.
• I think its share price needs to decline another 25% or more for the valuation of the company to be more compelling.
• That would mean its share price would need to decline to about HK36.2 per share. 

• Hua Hong joins the HSI on 7 September at ~0.54% weight. Passive rebalancing demand is mechanical, price-insensitive, and expires on effective date — irrelevant to valuation.
• Down 22% since initiation, the stock still trades at 57x FY26E EV/EBITDA — three to four times the peer range — with FCF deeply negative through 2027.
• BEARISH with FV HKD88 pegged to 12x FY27E EV/EBITDA — probability-weighted, sovereign-premium-adjusted, and already below SMIC’s multiple for a business with inferior margins and negative FCF.

• US online travel agent Booking Holdings (BKNG US — US$158 billion) built a dominant online travel business across the United States and Europe over the past 20 years.
• And the business seems to be going from strength to strength.
• In Asia, we have India’s MakeMyTrip (MMYT US – US$5.7 billion), which dominates that market and trades at a 5.0x EV/Sales multiple with weak profitability. 

• Q2 FY26 USD revenue rose 1% YoY to USD 10.5m; RM revenue fell 6% to RM42.1m. OPM recovered to 60.4% from 57.6% in Q1.
• Management now guides FY26 USD revenue to be broadly comparable to FY25, a directional steer absent in Q1. Zero debt, RM132.7m net cash, 4.5 sen interim declared.
• Stock now trades at 13.2x FY25a PE, 9.6x EV/EBITDA, 6.9x P/B at a dividend yield >7%

• Micron Technology has become one of the most dramatic beneficiaries of the artificial intelligence investment cycle, with its shares rising more than 700% over the past year and its market capitalization climbing above $1 trillion.
• Now the memory-chip maker is raising the stakes again.
• Micron plans to invest $10 billion over the next decade in Micron Research Labs, a new research institution whose flagship campus in Boise, Idaho, is expected to break ground next year.

• Grab Holdings Inc. reported strong second quarter 2026 results, marked by significant growth in adjusted EBITDA and active user metrics.
• Adjusted EBITDA increased 54% year-over-year to $168 million, expanding margins to 16.9% of revenue from 13.3%, representing the 18th consecutive quarter of EBITDA growth.
• On-demand gross merchandise value (GMV) rose 21% year-over-year to $6.5 billion, supported by a record 54 million monthly transacting users (MTUs), despite continued elevated fuel prices in the region.

• The legacy domestic growth engine has hit a structural ceiling. The tightening of private medical indemnity insurance (silbi) reimbursement rules in South Korea has severely constrained the high-margin hospital-exclusive Zeroid MD channel. The transition of the Zeroid brand into mass-retail channels like Olive Young in late 2024 was an essential defense mechanism but is diluting profitability due to intense competition and heavy marketing requirements.
• Operating margins remain healthy but are increasingly vulnerable to K-beauty’s structural inflation of customer acquisition costs (CAC). While Neopharm reported a solid 21.77% operating margin for FY 2025, domestic marketing expenses and slotting fees demanded by the dominant multi-brand store (MBS) channel, Olive Young, are compressing margins.
• Inorganic growth through M&A is urgently required to deploy cash and fill critical portfolio gaps. Despite holding 145.94 billion KRW in net cash with zero debt as of late 2025, management has been overly conservative. A capital allocation policy that prioritizes a 33% to 35% dividend payout ratio over aggressive, strategic acquisitions prevents the company from acquiring active ingredient-led brands (e.g., PDRN, Retinol) or international distribution infrastructure necessary to break the legacy brand ceiling.

• Sunoco LP reported strong financial and operational results for the second quarter of 2026, demonstrating growth across its diversified portfolio comprising Fuel Distribution, Pipeline Systems, Terminals, and Refining segments.
• Adjusted EBITDA reached $996 million, excluding $14 million in one-time transaction expenses, surpassing the mid-year performance that led the company to raise its full-year adjusted EBITDA guidance by $400 million to a range of $3.5 billion to $3.7 billion.
• Distributable cash flow (DCF) as adjusted was $608 million for the quarter, supporting a declared quarterly distribution of just over $1 per common unit.

• Asahi Holdings (5857 JP) share price rose 30% in a month after our last insight. Nothing was wrong with the company and result was great. 
• The stock will go ex-dividend next month, but the share price appreciation has beaten the dividend amount of 3.5%. Worth protecting the capital gain. 
• It generates one of the highest ROIC at 10% against the peers and trades at the lower end of the spectrum. 

• Jacobs Engineering Group delivered solid financial and operational performance in the third quarter of fiscal 2026, marked by double-digit growth in adjusted earnings per share (EPS) and strong revenue expansion across its key segments.
• Adjusted EPS increased approximately 14% year-over-year to $1.84, supported by over 8% organic adjusted net revenue growth and a notable margin expansion of more than 100 basis points.
• The Infrastructure and Advanced Facilities (I&AF) segment achieved a quarterly record with nearly $2.1 billion in net revenue, representing a 10% increase year-over-year.

• This insight details why Tata Investment Corporation (TATAINVE IN) and Kalyani Investment (KALY IN) share price has been declining. 
• We also discuss the latest developments in TVS (TVSHLTD IN) .
• Finally, we conclude with takeaways from Holdco price movement during the week.

• Zhongji InnoLight (3308 HK)‘s 2Q26 net profit surged 228.2%, with gross and operating margins expanding 5.3pp and 7.9pp, respectively, rebuffing the market’s concerns.
• There is room for earnings upgrades. Management has indicated that raw material price pressure will soften and that inventory is sufficient, benefiting 2H26 margin.
• Its HA premium has picked up after the IPO and is currently at 3.6%. Applying a 10% maximum justifiable premium, it means an H-share price of HK$1,210.50.

• The Arcline Carve-Out: The June 8, 2026 transaction in which US private equity firm Arcline Investment Management agreed to acquire Continental Aerospace Technologies for $535 million ended 15 years of Chinese state ownership under Aviation Industry Corporation of China (AVIC). The deal represents an EV/EBITDA multiple of 15.3x on 2025 adjusted EBITDA of $35 million (HKD 272 million) and is currently progressing through a complex liquidation and delisting of the Hong Kong-listed shell (0232:HK).
• Geopolitical Bottlenecks and Strategic Friction: The divestment was catalyzed by intense regulatory pressure, specifically CFIUS oversight and DOD scrutiny over AVIC’s military ties. Friction peaked following reports by local media outlet Lagniappe concerning a leaked 2022 proposal by CEO Karen Hong to acquire a Russian-owned competitor (RED Aircraft) to modernize Chinese military pilot training, making continued Chinese ownership of a critical US defense-adjacent supplier untenable.
• Structural Profitability Hurdles: While top-line revenue reached $257 million (HKD 2.0 billion) in 2025, gross margins remain constrained at 25.12% and operating margins sit at just 3.24%. This subpar performance is a direct result of inefficient capital allocation under AVIC, characterized by pre-2023 R&D starvation, high dual-certification compliance overhead between the FAA and EASA, and single-source dependencies for critical engine crankcase castings.

• Singapore Airlines (SIA SP) share price performance for the last 5 years is quite strong, thanks to the COVID rebound. 
• However, losses are still coming, notably from the continuing loss from Air India as well as the delayed fuel hedging loss as net fuel cost skyrocketed by 78% YoY.
• Air India losses come from a crowded market (with low-cost carriers) as well as integration issues. More capital calls are expected, which is a negative for Singapore Airlines. 

• We expect 1H26 revenue to be 6x that of 1H25 and Cloud-based revenue will exceed on-premise revenue in 1H26.
• The new model, GLM-5.3, ranks 6th globally in intelligence and No. 1 in speed in China.
• The gross profit margin will hit trough in 2026 and recover in 2027.

• Management expects FY27 MedTech revenue to cross INR 1,000 crore and says Q1 performance is comfortably tracking above that threshold.
• MedTech is largely demand generation, not only fulfilment, giving Entero a structurally better opportunity to earn higher gross and EBITDA margins.
• Mix shift can lift group margins even if core pharma remains competitive, creating earnings growth faster than revenue and a potential re-rating catalyst.

• Structural Pivot Gated by Backlog and Tech Transfer Friction: Nexgel’s strategic acquisition of Celularity’s regenerative biomaterials portfolio (now BioNX Surgical) represents a shift from low-margin OTC to high-margin reimbursed clinical channels. However, the division is currently constrained by a $795,000 backlog, driven by complex transfer-of-technology and manufacturing transitions from Celularity’s New Jersey plant to Sequence LifeScience’s San Antonio facility.
• The Moat of Ionizing Radiation vs. Chemical Competitors: Nexgel’s primary operational moat is its proprietary electron-beam (e-beam) cross-linking capability at its Langhorne facility. This allows them to manufacture chemical-free, sterilized hydrogels without the toxic monomer residuals found in chemically cross-linked products from competitors like Katecho and Axelgaard Manufacturing. However, this is highly capital-intensive and requires high capacity utilization to avoid severe fixed-cost absorption penalties.
• Severe Balance Sheet Overhang and Leadership Recalibration: Following a failed proxy vote to increase authorized shares due to a bundled redomicile proposal, Nexgel is facing a critical capital structure crisis. The appointment of Brian J. Kieser of Sequence LifeScience as Interim CEO on August 21, 2026, signals a pivot toward strict financial restructuring. The company has until September 25, 2026, to pass standalone proxy proposals for a reverse stock split and share authorization increase to prevent a technical default on its $5.5 million convertible note.

• PANACRO’s 38.9% gross profit margin in 2025 is an unsustainable structural outlier driven by revenue contraction and legacy vaccine trials, rather than genuine operational efficiency. As the company attempts to transition from niche, high-margin early-phase trials to volume-driven late-stage clinical monitoring, margins are already compressed to 35.0% in 1H26.
• The -394.8% gearing ratio in 2023 was a technical artifact of a distressed capital structure rather than balance sheet strength. Massive redeemable convertible preferred share liabilities wiped out equity, presenting an optical illusion of negative gearing that was only cleared upon the conversion to a joint stock company in January 2026.
• Severe key-man risk and highly centralized corporate governance limit PANACRO’s post-IPO institutional appeal. The founder holds 57.28% of the equity, his brother runs the IT division, and the company’s digital strategy relies on capitalizing R&D expenses to inflate profitability.

• Louisiana LNG’s capital risk has been heavily mitigated by the twin sell-downs in 2025 to Stonepeak (40%) and Williams (10% HoldCo, 80% PipelineCo). This structural partnering shifted $7.6 billion in capital obligations away from Woodside’s balance sheet, though Woodside remains exposed to $11.8 billion in capex and is actively searching for a third partner to acquire a further 20% stake.
• Scarborough is on the home stretch at 98% complete as of mid-2026, with first gas achieved and first LNG cargo locked in for Q4 2026. This project is the linchpin for Woodside’s near-term deleveraging strategy, as it must generate substantial free cash flow to offset a balance sheet currently carrying $9.3 billion in net debt and a 21% gearing ratio.
• Decommissioning liabilities are an immediate cash drain, with a US$6.89 billion restoration provision on the balance sheet as of Dec 31, 2025 and guided spend of US$500 to US$800 million for 2026 alone. This liability remains highly sensitive to regulatory changes, specifically NOPSEMA’s strict insistence on full removal over in-situ abandonment, which could drive long-term costs significantly higher.

• Inflection Point in Raw Milk Deflation: Farm-gate raw milk prices in China have stabilized around the 3.02 to 3.04 yuan/kg range and recently broke above the 3.05 yuan/kg floor in late July 2026. This recovery, supported by aggressive upstream cow culling and lower feed costs, is driving a financial turnaround for major farming operations. However, a structural return to high prices is unlikely due to persistent domestic oversupply and weak consumer sentiment.
• Chilled Liquid Milk as the Core Growth Engine: Junlebao is successfully navigating the steep decline in China’s infant formula sector—which fell to 22.1% of company revenue in late 2025—by pivoting to chilled liquid milk and premium fresh milk. Their flagship fresh milk brand, Yuexianhuo, generated 2.04 billion yuan in H1 2026, registering a 55.4% year-on-year growth rate and securing more than 50% of the high-end fresh milk market.
• High Leverage and Balance Sheet Strain: Despite solid operational growth in H1 2026, with revenue reaching 10.61 billion yuan, Junlebao faces severe capital allocation constraints. Its debt-to-asset ratio stood at 77.1% as of late 2025, significantly exceeding the industry average of approximately 45%. Post-IPO, the primary capital allocation challenge will be addressing its net current liabilities and integrating the heavy capital expenditures of its 63% self-sufficient upstream pasture model.

• Q1 FY27 revenue rose 8.3% YoY to Rs.382 crore against an internal target of Rs.410-415 crore, while order inflow hit a record Rs.532 crore, taking the book to Rs.1,686 crore.
• The shortfall stems from freight and shipping delays, not demand weakness, and the company entered semiconductor infrastructure and deepened its aerospace pipeline in the same quarter.
• With Savli ramping, an export order book above Rs.1,140 crore, and 18-20% FY27 growth guidance reaffirmed, the near-term execution gap is worth scrutinizing before the growth thesis is dismissed.

• The $8 billion (12 trillion won) inheritance tax overhang is fully resolved as of May 2026, with Chairman Lee Jae-yong maintaining tight control over Samsung Electronics and Samsung C&T without liquidating his own core holdings, relying instead on heavy bank loans and dividend flows.
• Samsung has formally delayed the mass production deployment of High-NA EUV machines until 2030 (at the 1nm node), choosing a cautious, cost-conscious path that mirrors TSMC, while relying on low-NA multi-patterning to contain spiraling capital intensity.
• Yesterday’s Board approval of a record KRW 90 trillion to KRW 110 trillion shareholder return package for 2026 represents a defensive move to appease institutional investors during a volatile memory cycle, but it severely limits the cash available for large-scale, core-technology M&A.

• In 1H26, Shanghai Conant Optical (2276 HK) reported revenue rise of 8% YoY buoyed by growth across segments like multifunctional lens (up 12%) and customized lens (up 37%).
• In 1H26, the company kept up with its consistency of expanding its gross margins period after period, as margin expanded from 41% in 1H25 to 42.9% in 1H26.
• Shanghai Conant’s demand outlook, capacity expansion plans, R&D initiatives and margin strength offer a strong long term secular growth story.

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

• Fee and Yield Compression Risk: Canary’s proposed 1.10% management fee on its Staked TRX ETF, combined with a gross staking yield of 3.0% to 4.0% and a 90% maximum staking allocation, severely compresses net yields for end-investors. This high-fee structure makes it difficult to attract yield-sensitive institutional capital compared to lower-cost alternatives.
• Sponsor Breakeven Headwinds: Operating under a $200,000 expense cap with high overhead—including the cost of a $250 million cold-wallet insurance policy—requires Canary to scale the ETF’s assets under management (AUM) to at least $25 million to $30 million to break even. Given a seed capital of only $250,000, the sponsor faces a steep uphill battle in capital allocation and distribution.
• Governance and Concentration Risks: The TRON network’s Delegated Proof of Stake (DPoS) governance is highly concentrated, with Justin Sun-affiliated entities (like Poloniex and HTX) dominating the 27 Super Representatives. This lack of decentralized voting power, paired with a 14-day Stake 2.0 unfreezing lockup, poses serious operational and regulatory challenges that the SEC is highly likely to scrutinize during the S-1 and 19b-4 review processes.

• Direct-drive technology is not a universal replacement for traditional harmonic gear reducers in robotics; instead, a structural bifurcation is occurring. Direct-drive (DD) and quasi-direct-drive (QDD) architectures excel in high-dynamic, low-load, and impact-resistant applications (such as legged robots and consumer sweepers), but traditional harmonic drives maintain an unassailable advantage in heavy-payload, high-stiffness, and ultra-precision industrial arms.
• Direct Drive Tech operates with an extreme customer concentration risk that severely limits its pricing power and compresses margins. The top five customers accounted for 85.7% of 2025 revenue and 81.3% in 1H2026, with a single Suzhou-based consumer robot giant contributing 53.6% of sales in 1H2026. This dependency forces the company to accept low single-digit margins on its high-volume, RMB 29 consumer-grade motor modules, while its high-tech humanoid joint modules and complete robots remain commercial footnotes.
• The company’s massive GAAP losses are driven by non-operating accounting liabilities, but its actual cash burn makes the post-IPO capital runway highly critical. Although the RMB 881 million net loss in 2025 was inflated by RMB 770 million in fair value changes of preferred share redemption liabilities, the company’s operating cash outflow of RMB 64.8 million in 1H2026 against limited cash reserves highlights its reliance on Chapter 18C IPO proceeds. If the IPO fails to price, the redemption liabilities—which escalated to RMB 1.74 billion by June 2026—could be triggered, posing an existential threat.

• SKG’s 16.5% revenue growth in 2025 masks a fundamental shift toward lower-margin physical massagers and unprofitable smartwatches, exposing the company to severe margin compression as the gross margin dropped from 50.7% to 48.2% in early 2026.
• The company operates primarily as a discretionary consumer electronics player rather than a sticky medical-utility brand, with demand heavily dependent on high-cost marketing funnels (sales expenses rising to 23.6% of revenue) and seasonal gifting cycles rather than clinical necessity.
• Competitively, SKG is trapped between Breo’s high-end niche and a brand-licensing onslaught from Philips, which has flooded e-commerce channels with cheap, licensed massagers, forcing SKG to outsource 66.1% of its volume to match competitor pricing.

• The BGN tolling agreement is an operational life preserver, not a margin driver. By transitioning from the terminated Phillips 66 contract to the BGN INT US LLC agreement, XCF Global has offloaded its feedstock price risk but severely capped its margin upside. Because BGN retains ownership of the feedstock, XCF acts purely as a contract processor, preventing it from capturing true green premiums, volatile feedstock arbitrage, or the full value of federal tax credits.
• Acute liquidity distress and an imminent debt wall threaten going-concern viability. XCF is operating on a microscopic liquidity runway with only $1.05 million in cash as of mid-2026. Meanwhile, it faces a defaulted $130.7 million Greater Nevada Credit Union loan and a ticking ground lease forbearance clock with landlord Twain Financial that expires on January 1, 2027.
• The proposed three-party merger with DevvStream and Southern Energy is a highly speculative recapitalization attempt. Despite the grand strategic narrative of creating an integrated e-SAF and environmental attribute giant, the transaction is heavily burdened by execution risks. Southern is chasing an unfinanced $400 million bond and DevvStream remains deeply unprofitable, making the transaction’s closing condition of achieving $1.0 billion in annualized revenue highly detached from XCF’s current physical footprint.

• Arista Networks reported strong fiscal second quarter 2026 results, highlighted by record revenues exceeding $3 billion—a milestone not previously achieved by the company in a single quarter.
• This represents a 37.7% increase year-over-year and surpasses the company’s guidance of $2.8 billion.
• Growth was primarily driven by demand from AI-focused and enterprise customers, with international sales growing to 23% of total revenue from 15.5% the prior quarter, reflecting robust global expansion.

• The latest quarterly report for BP p.l.c. highlights several key developments in its operational, financial, and strategic initiatives during the second quarter of 2026 under the leadership of newly appointed CEO Meg O’Neill.
• The period was marked by a volatile global energy environment, partly influenced by geopolitical disruptions in the Middle East, which affected upstream production and operational consistency.
• On the positive side, BP delivered robust financial results with underlying profit reaching $5.7 billion—a $2.5 billion increase from the prior quarter—and operating cash flow of $10.9 billion, despite a $1 billion working capital build.

• Numerous major news outlets including Reuters have reported that Samsung Electronics is getting ready to announce a major shareholder return plan worth more than 100 trillion won ($72 billion).
• The proposed framework would return about 50% of free cash flow to shareholders, with dividends expected to make up most of the payout.
• Samsung Electronics (005930 KS) and Samsung Electronics Pref Shares (005935 KS) were up 3.9% and 8.3%, respectively today on the back of this news about the potential major shareholder returns.

• All Time Plastics (ALLTIME IN) delivered steady growth with resilient gross margins; however, FY26 profitability weakened as geopolitical headwinds and capacity additions increased overheads, while utilisation remained subdued.
• FY25 receivables surged 79% despite 9% revenue growth, though normalised subsequently; recurring discrepancies between books and bank-reported working capital raise concerns over periodic reporting and reconciliation controls.
• Governance warrants attention given sizeable pre-IPO property purchases from promoters, high promoter/KMP remuneration and an unexplained INR 150 mn corporate loan.

• Indofood Agri Resources Ltd (“IndoAgri”) is a vertically integrated agribusiness with activities spanning from Research & Development (“R&D”), seed breeding, and oil palm cultivation to the extraction & processing of Crude Palm Oil (“CPO”) and Palm Kernel (“PK”), as well as the production & marketing of edible oil, margarine, and other related products and derivatives.
• For the six months ended 30 June 2026 (1H FY2026), revenue rose by 2.5% to Rp 9.6 trillion in 1H FY2026 from Rp 9.4 trillion in 1H FY2025.
• Third party plantations revenue fell by 11.7% year on-year (“y-o-y”) to Rp 2.1 trillion in 1H FY2026 amid higher portion of CPO sold internally to its Edible Oils & Fats (“EOF”) division, while third party EOF revenue rose by 7.4% y-o-y to Rp 7.5 trillion in 1H FY2026.

• Asset-Liability Mismatch Risk: The fundamental structural risk for Chocolate Finance lies in offering instant withdrawals (via FAST up to S$20,000 daily) while the underlying portfolio consists of short-duration bond and money market funds with a T+1 to T+2 settlement cycle. This forces the company to rely on a costly, proprietary liquidity facility that is highly sensitive to coordinated redemption waves during rate-cut cycles.
• Unfavorable Amova Partnership Economics: The embedded finance partnership with Amova operates on a tight revenue-sharing agreement where the net interest margin (NIM) of approximately 80 to 100 basis points is split, leaving Chocolate Finance with only 30 to 40 basis points. This margin is insufficient to offset the high technology integration, operational overhead, and compliance sync costs unless average customer balances exceed S$15,000.
• Compressed CAC-to-LTV and Shift to B2B2C: Direct-to-consumer customer acquisition costs (CAC) have remained high at S$90 to S$110, while Lifetime Value (LTV) has compressed significantly due to the reduction in target returns from 4.2% to 3.6% in response to falling global yields. This has driven up customer churn and forced a strategic pivot toward lower-margin, but higher-volume, B2B2C channels.

• Scale Multi-Brand Operator with Strong Regional Leadership: AmRest Holdings SE operates a diversified footprint of over 2,100 restaurants across Central & Eastern Europe and Western Europe, uniquely combining premier global franchise partnerships (KFC, Pizza Hut, Starbucks) with high-margin proprietary casual dining and sushi brands (La Tagliatella, Sushi Shop).
• Robust Free Cash Flow Generation Despite Thin Net Margins: While inflationary cost pressures and winter seasonality continue to weigh on accounting net margins (FY25 net margin of 0.63%), AmRest consistently generates substantial operating cash flow (>PLN 1.44B in FY25) and robust Free Cash Flow to Equity (PLN 800.25M in FY25), facilitating ongoing balance sheet deleveraging and steady capital return.
• Compelling Valuation Discount to Global Peers: Trading at an attractive 5.4x EV/EBITDA, 0.8x EV/Sales, and 1.5x P/B, AmRest is priced at a steep discount to international restaurant peers, offering an asymmetrical risk/reward profile as digital efficiencies and network optimization drive operational re-rating.

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• UK Telecom Exit Liquidity Windfall: CK Hutchison’s sudden £4.3 billion (€4.9 billion) cash exit from its 49% stake in VodafoneThree on July 30, 2026, completely reshapes its balance sheet. Confronted with onerous UK CMA behavioural commitments, including an £11.1 billion network upgrade, CK Hutchison opted for immediate asset monetization, generating HK$45.5 billion in cash to defend its Moody’s A2 and Fitch A investment-grade credit ratings.
• Geopolitical Squeeze and Ports Stagnation: The escalating concession dispute in Panama, highlighted by CK Hutchison filing a $1.5 billion (HK$11.7 billion) treaty arbitration on August 20, 2026, represents a broader sovereign risk read-through. This escalating dispute and national security scrutiny have indefinitely delayed the $22.8 billion global ports portfolio sale to BlackRock and MSC, forcing the company to hold onto low-growth, high-capex marine terminals.
• The Watson Valuation Standoff: The long-delayed A.S. Watson IPO remains stalled at a rigid $30 billion target valuation. Because public markets price retail peers at 7x to 9x EBITDA while CK Hutchison demands an 11x to 12x multiple to facilitate a clean exit for its 24.95% minority partner Temasek, the parent company prefers to extract high-margin retail dividends rather than accept an IPO discount.

• Sportradar International Ltd. reported its second quarter 2026 financial results, highlighting 19% year-over-year revenue growth to EUR 378 million, primarily driven by increased betting and gaming content revenues, particularly through the monetization of IMG ARENA rights.
• On a constant currency basis, revenue growth was approximately 21%.
• The company achieved an adjusted EBITDA of EUR 76 million, reflecting a 19% increase compared to the prior year, supported by operational efficiencies and synergy realization from IMG ARENA integration.

• Springfield has announced a share buyback programme for the on-market purchase of up to c.6m ordinary shares (c.5% of issued share capital), subject to shareholder approval at a General Meeting.
• Share buybacks are being announced with increasing frequency amongst UK housebuilders, with Barratt Redrow notably launching a £400m programme last month.
• For Springfield, this follows a period of strong cash generation and, in our view, represents an effective use of capital, given a c.25% discount to NAV.

• Advanced Micro Devices, Inc. reported a strong performance in the second quarter of fiscal 2026, with revenue reaching a record $11.5 billion, representing a 50% increase year-over-year and a 13% sequential rise.
• This growth was primarily driven by the data center segment, which accounted for 58% of total revenue, up from 42% a year prior, highlighting the company’s successful pivot toward server and data center AI products.
• Data center revenue more than doubled year-over-year to $6.7 billion, propelled by robust demand for EPYC processors and Instinct accelerators, as well as cloud and enterprise sales growth exceeding 70%.

• We are raising our rating on Vera Bradley to Buy (from Hold) and instituting a price target of $5, as we believe the gains from “Project Sunshine” are becoming materially evident and will begin to register bottom line upside in 2HFY27 and beyond, as we are seeing material progress in main line and outlet stores and the beginning of a resurgence in the wholesale channel.
• Although we are leaving our projections unchanged (for now), we believe, beginning in 2HFY27 (and beyond), the company has the ability to materially outperform our projections.

• Growth. 1H26 revenue growth slowed sharply vs what is implied from consensus, confirming the reset we expected heading into results.
• Geography. Overseas revenue growth turned negative for the first time in the current growth cycle.
• IP sustainability. The flagship IP “The Monsters” declined YoY, partially offset by Twinkle Twinkle.

• SK Hynix (000660 KS) is trading at a historical low at 6x PER, and growth (as of now) remains intact. 
• The share buyback announcement helped to catapult the share price by 12% today. 
• The workers’ bonus in stocks should be seen as a risk – the total volume will not be material enough to affect daily liquidity. 

• I-Scream Media reported excellent results in 1H26. The company generated sales of 92.5 billion won (up 18.5% YoY) and operating profit of 23.9 billion won (up 64.5% YoY) in 1H26.
• The company is listening to its minority shareholders and seriously improving its corporate governance with higher shareholder returns. Estimated dividend yield is 13% this year.
• I Scream Media is trading at P/E of 4.5x and EV/EBITDA of 1.3x based on recent prices and TTM financials. Net cash as a percentage of market cap is 74%. 

• Tempsens Instruments (India) (TEMPSENS IN) opens its INR 650 crore IPO on August 20, 2026, priced at INR 285–300 a share, valuing the business at up to INR 2,515 crore.
• The company controls ~10.5% of India’s temperature sensor market and is the country’s only non-contact sensor manufacturer, a rare listed proxy for industrial capex.
• Margins and market position are genuinely strong, but geographic concentration, a heavy offer-for-sale, and a 35x post-IPO multiple demand a closer look before subscribing.

• Palantir Technologies reported exceptionally strong results in the second quarter of fiscal 2026, marked by a 93% year-over-year revenue growth, the highest in the company’s history, and a significant acceleration in its U.S. business.
• U.S. revenue accounted for over 81% of total revenue and grew 115% year-over-year, driven by 149% growth in U.S. commercial revenue and 90% growth in U.S. government revenue.
• The company closed a record number of large deals, including 220 deals worth $1 million or more, with 98 deals above $5 million and 73 deals exceeding $10 million.

• We keep deep-value Bank of Baroda on the buy list, whilst replacing UBI with Canara on the buy list; Baroda trades at an over 50% discount to SBI’s PBV ratio
• Canara stands out for its PBV to ROE, as well as its prospective earnings and dividend yields; Canara has also been aggressively writing-off NPAs, reducing its low NPL ratio further
• We add Indian Bank to our coverage in this report; it ranks highly on the scorecard but we believe that Canara has the edge on valuation metrics and credit write-offs

• Keisei Electric Railway Co (9009 JP) is the main beneficiary of the Narita Airport capacity expansion. More travelers means a higher ridership rate. 
• It now trades at 12x PER, share price normalized post COVID. Trades at a discount compared to Shinkansen operator like East Japan Railway Co (9020 JP) 
• The short-term impact may be a little negative, but the mid- to long-term should be very positive. 

• Promoter holding fell from 74.77% in Mar-22 to 41.57% in Jun-26, driven overwhelmingly by the Gangwal family’s planned monetisation.
• Gangwal-Linked ownership is down from about 36.9% to 5.85%, while the Bhatia side remains near 35.7%, preserving a clear ownership anchor.
• Residual promoter supply is now finite and quantifiable; fuel, FX, capacity and international execution increasingly matter more than the ownership overhang.

• SMIC last week reported second quarter revenues of just over $3 billion, up 19.7% QoQ, up 36% YoY and handily beating the forecasted 15% growth at the midpoint.
• Gross margin was 25.3%, up 5.2 percentage points QoQ and up 4.9 points YoY. The significant improvement here was also attributed to both ASP increases a more favourable product mix.
• SMIC’s AI companion chip demand is enormous, we pulled forward shipments and increased this significantly. In this report we said the increase, on a comparable basis, should be around 40%.

• Futu Holdings Ltd (FUTU US)‘s 2Q26 non-GAAP net profit growth of 40.1% is impressive, suggesting that the negative impact of regulatory issues is fading. 
• Operational metrics accelerated sequentially, partly due to the solid HK IPO pipeline, which is likely to sustain. 3Q26 momentum moderated slightly but is manageable.
• Its 12.1x FY26 PER is inflated given the room for earnings upgrades. It is also cheaper than the average of 17.2x since 2021 and 13.7x since 2025.

• Consensus. The Street reset its numbers after the March results and the May update, then stopped while July channel data weakened. We think a second reset is ahead.
• Positioning. July’s bounce is accompied by short covering. Southbound has been a seller since June and the company’s buyback has been idle since April.
• Guidance risk. Management has lowered the bar twice this year. We expect the results call to lower the growth tone again.

• Groww has rapidly scaled its Margin Trading Facility (MTF) business, creating a new interest-income opportunity beyond traditional broking revenue.
• MTF can improve customer monetisation, increase wallet share and create a more recurring revenue stream for discount brokers.
• If Groww achieves meaningful MTF penetration similar to established players, the business model could shift from transaction-led to platform-led financial services.

• Power Grid has work-in-hand of ~5x FY27 capex guidance, while 1QFY27 showed a clear improvement in execution through stronger capitalisation and continued TBCB wins.
• India’s transmission opportunity remains structurally strong, and we believe Power Grid is entering an operational recovery phase. The key catalyst is sustained project execution and monetisation through 2027e.
• We value Power Grid at 3.5x FY28E P/B, implying 60%+ upside over a medium-term horizon, largely driven by re-rating as execution and tariff conversion become more visible.

• Revenue and NOI rose 17% YOY and DPU 9%. Q1 DPU was affected by property tax timing, while management reiterated double-digit FY27 DPU growth
• Leasing remains strong. 1.3 msf signed at 10% spreads and an 8% market premium, with GCCs driving 81% of leasing and AI-linked sectors 21% of new demand.
• Growth is supported by rent escalations, pre-leased developments and hotel ramp up. Key risks are refinancing needs, weak Pune occupancy and the Four Seasons transition.

• Context: The BHP (BHP AU) vs. Rio Tinto (RIO AU) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlight: Going long Rio Tinto (RIO AU) and short BHP (BHP AU) targets a 4% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Premium Valuation vs. Asset-Heavy Reality: Following its listing on August 18, 2026, at ₹181.50 (a 29.61% premium over the ₹140 issue price), Milky Mist is valued at ₹13,972.66 crore (~$1.46 billion). This 85x price-to-earnings multiple matches premium packaged-food FMCG players, but ignores the company’s asset-heavy, highly leveraged, and low Return on Capital Employed (11.73% in FY26) model.
• The Cold-Chain Distribution Moat: Milky Mist’s primary defense against cooperative giants like Amul is its network of 41,459 owned visi-coolers placed in retail stores. This capital-intensive strategy secures exclusive shelf space and drives a 19% national organized paneer market share, but severely depresses free cash flows and asset turnover compared to asset-light peers like Dodla Dairy.
• Concentration Risk and High Financial Leverage: Despite using ₹496.86 crore of its IPO proceeds to deleverage—bringing debt-to-equity down from 3.61x toward a target of under 1.4x by FY27—Milky Mist is concentrating ₹469.24 crore of new capital expenditure back into its single manufacturing facility in Perundurai, Tamil Nadu. Its high-profile national expansion remains high-risk and freight-heavy until its proposed Baramati, Maharashtra plant is operational.

• Alibaba Group Holding Limited is advancing another major portfolio simplification as its Lingxi Games business moves toward new ownership under Asian private-equity firm Trustar Capital.
• The latest development goes beyond preliminary acquisition interest: Alibaba has reached an agreement to sell Lingxi Games, with reports indicating a valuation of more than $1.5 billion, although the final consideration has not been publicly disclosed.
• Lingxi Chief Executive Zhou Bingshu described the transaction as part of Alibaba’s broader effort to sharpen its strategic focus, while the company continues directing more capital toward artificial intelligence, cloud infrastructure, e-commerce and consumption.

• As we expected, there continues to be absolutely no sign that the current U.S.-Iran stalemate will end anytime soon.           
• In terms of our energy equity universe, it appears that portfolio managers are now embracing oil price “duration” versus price level, consistent with our “indefinite stalemate” scenario.                         
• We would not “chase” our stocks here, however, and we are looking for opportunities to begin trimming equity length in our model portfolio versus hedging with the commodity.                  

• The best ROIC in the wafer group (14.5%) does not trade at the best multiple — the PVC business imposes a conglomerate discount; the silicon recovery removes the justification.
• FY2025’s 14.4% profit fall was two independent cycle troughs — Asian PVC and wafer destocking — arriving simultaneously; Q1 FY2026 confirmed both are passing, management calls supply constrained.
• Initiating BULLISH, fair value ¥7,300 (11.5x FY2027E EBITDA); 14.4% capital upside plus 2.0% yield; 23 October H1 result is the catalyst to quantify the Electronics Materials recovery.

• Onsemi’s second quarter results for 2026 illustrate ongoing progress in its strategic reshaping and portfolio repositioning, with revenue reaching $1.6 billion—a 9% increase year-over-year—and non-GAAP diluted earnings per share of $0.74, both above midpoint guidance.
• The company reported a non-GAAP gross margin of 39.3%, marking the fourth consecutive quarter of margin expansion, driven by improved manufacturing performance, favorable product mix, and operating leverage amid recovering demand across multiple markets.
• A key highlight is the continued strength and rapid growth of the AI data center segment, expected to more than double revenue in 2026.

• The “Hard-Sell” Engine is Structural, Not Incidental: Perfect Medical’s high margins are structurally dependent on aggressive staff incentives and upsell-heavy consultations. Attempting to pivot to a purely transparent, soft-sell model would cause immediate top-line collapse because first-time client organic retention is extremely low.
• Cross-Border Leakage Shifting Competitive Moats: The post-pandemic outflow of Hong Kong discretionary spend to Shenzhen and South Korea has permanently damaged local mid-tier aesthetic volumes. Perfect Medical is defending its domestic market by aggressively cutting costs and introducing lower-margin, high-turnover “Korean-style” treatments, shifting their premium physician-led brand toward a mass-market value play.
• Strict Private Healthcare Licensing Raising Operational Friction: The rollout of the Private Healthcare Facilities Ordinance (PHFO) licensing regime starting October 13, 2025, forces operators to appoint formal Chief Medical Executives. While Perfect Medical’s doctor-founded legacy provides a compliance buffer, it severely escalates administrative overhead and limits the execution speed of clinic redeployments.

• Korean retail spent US$840mn on SK Hynix ADRs in July — at up to 60% above the identical Seoul share — and ignored Samsung at home in the same breath.
• This is venue distrust, not a change of thesis. The Infosys ADR hit a 135% premium in 2000; it took 3–5 years to compress. TSMC’s never has.
• Remain BULLISH on both names; FVs unchanged. Own the South Korean mother share. The ADR premium is a sentiment gauge, not an investment.

• Doctor Care Anywhere (DOC) is transitioning from a high-growth, loss-making telehealth provider to a more disciplined, profit-focused entity. The company achieved its first full-year net profit in the period ending January 2025, a significant milestone driven by cost controls and operating model changes.
• The company’s business model is heavily reliant on a B2B2C strategy, partnering with major UK health insurers like AXA Health and other healthcare providers to access a large base of eligible patients. While this provides efficient customer acquisition, it also creates significant concentration risk with key partners.
• Future growth is expected to be driven by expanding its direct-to-consumer (D2C) offerings, cross-selling new services like weight management, and forming new strategic partnerships. The company’s medium-term ambition is to approximately double revenue over three to five years while maintaining an EBITDA margin of around 15%.

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• Amid the impact of oil prices, the car maker recorded a growth rate of 15% YoY in 2Q26.
• Export growth has exceeded 100% YoY over past half year and surged to 200% YoY in July.
• We estimate that the stock price will double at the end of 2027.

• This insight details about the weekly changes in the holding company discount in India.
• We track the reasons for change in the holdco discount if any and upcoming triggers for these companies.
• While this note captures 5 holding companies, we intend to add more names in coming weeks.

• Demand Restocking vs. Structural Growth: NAFCO’s strong H1 2026 revenue of NT$ 2.59 billion (up 34.67% YoY) is heavily supported by an extended 8-to-9-year order visibility, but a portion remains driven by OEM safety-stock buffering amid casting and forging bottlenecks, rather than pure structural demand growth.
• Malaysia Expansion Risk/Reward: The USD 40 million Malaysia facility in Seremban offers structural labor cost advantages, but near-term margin pressure is expected. While Phase I is operational, the much larger Phase II facility broke ground on January 30, 2026 and will not reach commercial operation until 1H 2028, pushing optimal utilization and margin-accretive scale out by at least two to three years.
• Defensibility of Engine Monopolies: Despite rising regional players, NAFCO remains the sole certified aerospace engine fastener manufacturer in the Asia-Pacific region for GE and Safran. Its 2021 Safran forging certification and NADCAP MMM status create a high moat that protects its 23.87% TTM gross margin from competitor pricing pressure, as additive manufacturing presents zero immediate threat to its high-volume, safety-critical hot-forging business.

• Solidigm’s Financial Paradox: Despite a spectacular operational turnaround in H1 2026, reporting a net profit of KRW 5.8 trillion driven by booming enterprise SSD (eSSD) demand, Solidigm remains severely financially constrained by a debt-to-equity ratio of 4,484%. A potential Nasdaq IPO is facing intense public backlash from minority shareholders and corporate governance watchdogs, with a 70% to 80% probability that SK Hynix will postpone or cancel the listing.
• HBM Packaging Moat and the Stacking Battle: SK Hynix retains a clear, yield-driven competitive advantage in HBM3e with its proprietary Advanced MR-MUF technology, yielding 75% to 85%. While Samsung’s Advanced TC-NCF is closing the gap with yields reaching 60% to 65%, and Micron is scaling up 12-high HBM3e production, SK Hynix’s deep trilateral integration with TSMC and Nvidia provides a substantial time-to-market advantage heading into HBM4.
• The Cyclical Trap vs. Structural Cash Flow: Despite posting a historic Q2 2026 operating margin of 76% (operating profit of KRW 60.5 trillion), SK Hynix’s stock faces compression, trading at approximately 5 times next year’s earnings. This is driven by legacy DRAM/NAND pricing plateaus following massive Q1 surges, and market concerns over capital expenditure plans exceeding $31 billion in 2026 leading to future oversupply.

• Although 1H26 revenue of $27.3mil is only 33% of RHTC’s $82mil for FY26F (1H25 was 40% of  FY25), net profit at $9.7mil is 36% of RHTC’s $27mil for FY26F.

• We expect a stronger 2H26 based on a re-acceleration of order book growth in 1H26, retention metrics of over 90% for ITS’s core annual revenue upfront subscription HCM software (SaaS) and expected Academy corporate training momentum in 2H26.

• Services revenue more than doubled to $4.9mil establishing Academy/AI corporate training as the second growth engine.

• In this Deep Dive series episode, Nicolas Bornozis, President of Capital Link is joined by the senior management team of Capital Clean Energy Carriers Corp., Mr. Brian Gallagher, EVP of Investor Relations, Mr. Nikos Tripodakis, Chief Commercial Officer and Mr. Jack Neilan, Head of LPG Commercial, to discuss the Company’s long-term strategy, investment program, commercial and chartering approach, financing strategy, and the structural trends shaping the LNG, LPG and liquid CO₂ shipping markets.
• Watch the full discussion: https://www.youtube.com/watch?v=NEASHPHIm0Y Becoming the Reference Owner in Gas Transportation Two years ago, the Company was a Nasdaq-listed MLP with a mixed fleet and a legacy containership business.
• Since then, it has undergone a significant transformation – renaming itself, refinancing, converting to a corporation in August 2024 and gradually exiting its containership exposure.

• HHP Sales Propel H1 Growth. CYD reported first half revenue of RMB 14.7 billion, 13.9% above  the year ago period, but well shy of our revised estimate.
• The growth rates for nearly all segments looks impressive on the surface, but the details impacted the miss from our estimate.
• HHP engines drove Revenue growth, with 1,800 total HHP units going to AIDC. 

• We expect MiniMax’s H1 2026 revenue to be at least 5x its H1 2025 level.
• Technical rankings, such as intelligence and speed, dropped in August.
• The stock has been capped by 60-day moving average, but Price/Sales suggests a buying opportunity.

• As Singapore marks National Day, its equity market reflects the country’s position as one of Asia’s leading financial and business hubs.
• The Amova Singapore STI ETF seeks to replicate, as closely as possible, before expenses, the performance of the Straits Times Index (STI), and provides diversified exposure to Singapore’s largest listed companies.

• Several structural factors have supported the STI (“the Index”) over the past year, including Singapore’s resilient economic growth, continued foreign capital inflows, expanding financial services sector and supportive market development initiatives.

• Company consistently generates high double-digit ROE despite having more than 30% of equity in cash
• Promoter shareholding is high, indicating alignment of interest with minority shareholders
• Recent weakness in the stock price makes the valuation attractive for a business that makes decent free cash fdlow. And a high dividend yield

• AMAT reported record Q326 revenues of $9.1 billion, +15% QoQ (the highest QoQ growth in the company’s history), +25% YoY, all while handily beating the guided midpoint of $8.95 billion.
• Non-GAAP GM increased to 50.4%, +40 basis points QoQ and +150 basis points YoY. Operating income was a record $3.10 billion, with EPS of $3.50, also a record.
• The >30 YoY growth that we highlighted last quarter – we’re saying now that it’s greater than that but we don’t want to guide our Q1 at this point

• Management held a 3.5-hour Investor Day on 13 August targeting ~80% GM and ~75% OM for FY2028–2030, 9 percentage points above our prior FY2027E assumption.
• The first HBF memory die is taped out, Jim Keller joined the Advisory Board, the first HBF specification was published today at Flash Memory Summit.
• We raise FY2027E EPS from $186 to $205 and TP from US$1,860 to US$2,050 (10x FY2027E, 10% discount to Micron); BULLISH, +24.9% upside potential

• Q1 FY27 consolidated revenue reached ₹2,788 crore (+21% YoY), EBITDA ₹638 crore (+50%), and EBITDA margin 22.88%. Management raised FY27 revenue growth guidance to 14–16% and margin guidance to ~23%.
• Growth is no longer being carried by the domestic franchise alone. APIs, Europe, Unichem’s US/Brazil/API businesses and ex-tender generics are all contributing, while cost ratios are falling through operating leverage.
• The story is shifting from recovery to multi-engine compounding. The next rerating, however, needs proof that Unichem’s improvement is durable and that margins hold despite freight, raw-material and tender-timing volatility.

• Micro-Mechanics (Holdings) (“MMH”) is a company that designs, manufactures and markets high-precision tools & parts used in the assembly and wafer fabrication processes of the semiconductor industry.
• It has five operating facilities located in Singapore, Malaysia, China, the Philippines, and the U.S., and serves more than 600 customers (as noted by MMH in April 2026).
• Besides designing & manufacturing consumable tools & parts used for the assembly & testing of semiconductors, MMH also produces parts for Wafer Fabrication Equipment (“WFE”).

• Market Leader with Strong Aftermarket Business: Burckhardt Compression is a global market leader for reciprocating compressor systems, critical for various industrial processes. Its large installed base provides a significant and stable revenue stream from high-margin aftermarket services, enhancing earnings visibility and resilience.
• Positioned for Energy Transition: The company is strategically positioned to benefit from the global energy transition. Its compressors are essential for emerging applications such as hydrogen production, transportation, and storage, as well as for carbon capture, utilization, and storage (CCUS), representing significant long-term growth avenues.
• Robust Financial Performance and Shareholder Returns: Burckhardt has demonstrated a strong track record of revenue and net income growth, coupled with consistent and rising dividend payments. The company maintains a solid balance sheet and has shown disciplined capital allocation, supporting both investment in growth and attractive returns to shareholders.

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• 2Q headline beat: The 2Q26 results of AvePoint were largely positive with AvePoint’s ARR, revenue, and Non-GAAP operating income ahead of management guidance and street consensus.
• The negative blip came from weaker-than-expected margins and a lowered FY26 guidance QoQ, largely attributed to FX headwinds and continued increased investment spending.
• AvePoint continued a high clip of share buybacks, spending another ~USD50mn repurchasing shares in 2Q26, bringing 1H26 share repurchases to USD111mn.

• Inovio Pharmaceuticals, Inc. (NASDAQ: INO) has suddenly become the kind of biotech stock that momentum traders love.
• The share price closed at $1.09 on August 14, 2026, according to the S&P Capital IQ data supplied for this report.
• That sits far below its 52-week high of $2.98, but well above the $0.56 low.

• Cost-Out Sustainability: Up to 40% of the $30 million business efficiency program is temporary or represents deferred R&D (technical debt) that must eventually be repaid. Immediate margin gains to meet the 25% Cash EBITDA exit run-rate target by the end of FY26 are being prioritized over platform health, risking long-term product stability.
• The “Bypass” Risk and Slow UK Traction: In Australia, Xplan’s 60% market share remains structurally secure due to prohibitive migration costs, but clients are increasingly “bypassing” the front-end. They use Xplan strictly as a back-end utility database while building custom Salesforce portals or using modern wrappers. In the UK, Xplan remains a minor player with a 9% market share compared to Intelliflo’s 46%, and efforts to capture market share in UK wealth are failing to achieve meaningful organic scale.
• Overhyped Regulatory and AI Growth Vectors: The anticipated revenue pipeline from the “Delivering Better Financial Outcomes” (DBFO) legislation is currently negligible. Large super funds are deferred from investing in digital advice solutions until legislative certainty is finalized. Similarly, Iress’s AI strategy—anchored by the May 2026 Thoughtworks partnership—is purely defensive, designed to prevent churn rather than generate incremental average revenue per user (ARPU), and carries a high risk of seat-license cannibalization.

• Domestic Moat and Pricing Power Rebound: DiDi Global has secured a domestic market share of over 70%, proving that its direct-to-consumer traffic moat is highly resilient against aggregators like Amap. In Q2 2026, its China Mobility segment achieved an implied platform take-rate of 24.3%, driven by the structural wind-down of user subsidies to approximately 1% of GTV and driver-side incentive reductions.
• Latin American Expansion as a Strategic Hedge: While DiDi’s aggressive international push—such as the relaunch of 99Food and introduction of 99 Compras—continues to drag on group-level profitability with a wider H1 2026 net loss, this expansion serves as a critical strategic hedge. It forces Uber to defend its highly profitable Latin American strongholds, preventing it from redeploying capital back into Asian markets.
• Regulatory Clearance and Capital Return Stability: The final court approval of the $740 million US shareholder litigation settlement on June 16, 2026, removes a massive financial overhang. Backed by a robust cash reserve of $6.7 billion, the platform is fully funded to execute its $2 billion share buyback program and finance the commercialization of its “R2” Robotaxi model without diluting core operations.

• ASICS delivered a large top- and bottom-line beat in the June quarter and raised FY26 guidance
• Net sales of ¥264.2bn (+35.9% YoY) were +7.8% above consensus (¥245bn), while operating profit of ¥59.7bn (+63% YoY) beat consensus (¥47bn) by +27%
• The headline print is clearly strong, with SportStyle and Onitsuka Tiger continuing to drive growth.

• Capital recycling is the 2026 growth engine. S-REITs are selling legacy assets at premiums to private credit, funding accretive acquisitions without dilutive equity raises at wide NAV discounts.
• CLAR exemplifies this, divesting a legacy asset at a 32% premium to rotate SGD 1.4 bn into high-yield Japanese data centers and premium logistics, securing execution certainty.
• Despite United States business park headwinds, CLAR boasts a fortress balance sheet with 39.7% leverage and 8.5% rental reversions, cementing its status as an institutional yield favorite.

• Q2 revenue grew +24.6% YoY to ¥12.9bn, while gross margin broke through 60% for the first time (+4.0ppts YoY to 60.1%), with operating margin up 3.7ppts to 11.5%.
• US & EMEA remained the standout, accelerating to +59% organic growth on enterprise wins, while NEA (72% of revenue) held a steady +33% organic pace
• Shares jumped +15% post-results to ¥1,132, still leaving the stock at ~2.1x FY26 sales and ~11x FY26 EBITDA guidance for a business now guiding to +69% operating income growth. 

• Mainland CRE De-risking and the HKCRE Impairment Hangover: Dah Sing has aggressively written down its Mainland China commercial real estate (CRE) book, but asset quality pressure has migrated to the Hong Kong commercial real estate (HKCRE) book. Following the June 2025 Moody’s rating downgrade to A3 (sparked by HKCRE impaired loans jumping to 8.98% in 2024), the bank reduced its outstanding HKCRE exposure by nearly 9% to HK$23.48 billion by end-2025. While write-offs have accelerated, significant “extend-and-pretend” rollover practices persist among bilateral club loans where collateral valuations remain stale due to illiquid transaction markets.
• NIM Defense via Aggressive Deposit Re-pricing: With 1-month HIBOR softening to approximately 2.5% in mid-2026, Dah Sing’s stellar FY2025 NIM of 2.41% faces compression. To defend margins, management is using tiered CASA pricing structures (e.g., “YOU i-Account”) and linking deposits to transactional business banking (“328 Business Banking Rewards”) to push expensive time deposits back into low-cost CASA, alongside interest rate swaps to lock in asset yields.
• The Capital Management Paradox: Despite boasting a fortress Common Equity Tier 1 (CET1) ratio of 18.8% at the end of FY2025, a share buyback program remains a structural non-starter. Because the parent company, Dah Sing Financial Holdings, holds a 74% stake, any buyback would severely compromise the stock’s already thin minority float. Special dividends are highly unlikely until macroeconomic uncertainties in Greater China resolve and the bank’s book value under its HK$3.16 billion Bank of Chongqing investment is fully validated.

• Context: The Inpex (1605 JP) vs. Mitsui & Co (8031 JP) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlight: Going long Mitsui & Co (8031 JP) and short Inpex (1605 JP) targets a 5% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• 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 persist across three markets and five sectors.
• Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.

• We visited CTW’s new office in New York city. It’s tasked with U.S. marketing, finance, and investor relations.
• CTW has further developed its tech platform capabilities to be able to see market traction for new game launches in real-time and adjust game play or marketing spend accordingly.
• The U.S. marketing team started in June; expect U.S. market traction picking up in second half of calendar 2026. Liquidity should increase in shares as CTW engages investors more intensively.

• SBA 7(a) Pivot to Commercial Banking: BayFirst Financial (BAFN) is executing a strategic pivot away from its disastrous, nationwide, small-dollar, fast-track SBA 7(a) lending program (“Bolt”), which was discontinued in August 2025 after generating significant credit stress. The bank is refocusing on its core, high-touch community and commercial banking operations in the Tampa Bay and Sarasota regions of Florida.
• Legacy Credit Resolution & Balance Sheet Restructuring: BAFN’s Q2 2026 earnings were heavily impacted by a $41.5 million asset resolution charge and historical restatements covering FY2024, FY2025, and Q1 2026. The financial cleanup was funded by an $80 million private placement of preferred stock in April 2026, which restored the Tier 1 leverage ratio to 8.30% from a precarious 5.89%.
• Indefinite Common Dividend Suspension & Lehman’s Strategic Influence: BAFN’s common dividend, suspended since July 2025, is unlikely to be reinstated in the near term. The board will prioritize organic capital preservation, regulatory compliance, and resolving the legacy loan portfolio. Anchor investor Kenneth Lehman’s 42.4% beneficial stake positions BAFN as a highly disciplined credit operator and a potential consolidation target down the road rather than an active M&A consolidator.