Daily Briefs

52TOYS Development (TOY HK) is looking to raise up to US$200m in its upcoming HK IPO.
52Toys Development is one of the leading IP toy companies in China, with a portfolio of over 100 proprietary and licensed intellectual properties (IPs) as of Dec 2024.
In this note, we look at the company’s past performance.

Eve Energy A/H Listing – One of the Leaders but Growth Has Been Slowing

By Sumeet Singh

EVE Energy (300014 CH) (EVE), a lithium battery provider, aims to raise around US$1bn in its H-share listing.
EVE produces lithium batteries which cater to consumer battery, power battery and ESS battery sectors.
In this note, we look at its past performance and other deal dynamics that might impact the listing.

Silver Consumer Electricals Limited Pre-IPO Tearsheet

Silver Consumer Electricals (2301263D IN) is looking to raise US$160m in its upcoming India IPO. The deal will be run by Motilal Oswal Investment Advisors, ICICI, JM Financial, Choice Capital Advisors.
Silver Consumer Electricals Limited (SCEL) is one of India’s leading manufacturers of electrical consumer durables and agricultural equipment, operating through own-branded sales (“Silver” and “Bediya”) and OEM supply
The company operates India’s largest single-location, vertically integrated ECD and agri-equipment plant in Rajkot, Gujarat.

Tata Capital IPO: The Investment Case

Tata Capital Limited (TATACAP IN) is the third-largest non-banking financial company (NBFC) in India. It is seeking to raise US$2.0 billion.
On 8 May 2025, Tata Capital merged with Tata Motors Finance Solutions Limited (TMFL) through the issue of 183.9 million shares.
The fundamentals are mixed. Positives include large size, high growth rates, low opex ratio and good asset quality. Negatives include below peer average NIM, interest spread and ROE.

Kasumigaseki Hotel REIT IPO: Books Well Covered; Modest Upside from Here

By Nicholas Tan

Kasumigaseki Hotel REIT (401A JP) raised US$193m in its upcoming Japan IPO.
Kasumigaseki Hotel REIT Investment is a REIT with hotel assets. It is an investment corporation sponsored by affiliated developer, Kasumigaseki Capital.
In this note, we examine the IPO dynamics, and look at the firm’s valuation

Varmora Granito Pre-IPO Tearsheet

Varmora Granito Limited (6590052Z IN) is looking to raise at least US$100m in its upcoming India IPO. The deal will be run by Goldman Sachs, JM Financial and SBI Capital.
Varmora Granito Limited (VGL) is a leading Indian manufacturer and trader of varied types of tiles. As of FY25, its portfolio comprised over 3,500 SKUs.
VGL generates 78.69% of its revenue from India, selling its products through both B2C and B2B channels. Its domestic revenue is primarily driven by its B2C channel.

Titan America (TTAM) Six Month Summary: From Steady Debut to a Sluggish Slide

By IPO Boutique

Titan America priced 24 million shares at $16.00 per share and saw an opening print of $16.20.
TTAM began a slow descent, bottoming at $10.80 in early April—a near 33% loss from its IPO price.
Value investors found favor in the secular tailwinds of US infrastructure following the IPO roadshow but that support faded as the months wore on.

Pre-IPO Eastenova (Chengdu) Biotechnology- The Commercialization of XH301 May Be Lower than Expected

By Xinyao (Criss) Wang

Eastenova is in the initial stage of commercialization. The revenue proportion of non-core assets is too high, with negative gross margin. These are “inefficient assets” and dragged down overall ROA.
XH301 is lagging behind its competing products in term of development progress and may face the risk of market share squeeze. There’re uncertainties in terms of the commercialization of XH301.
Our forecast at this stage is that future sales of XH301 could reach about RMB300-500 million, considering the fierce competition. Valuation of Eastenova could be lower than that of Sihuan.

Tata Capital Pre-IPO Tearsheet

By Akshat Shah

Tata Capital Limited (TATACAP IN) is looking to raise upto US$2bn in its India IPO, which will be run by Kotak, Citi, JPM, Axis, ICICI, HSBC, IIFL, BNP,SBI and HDFC.
Tata Capital Limited (TCL) is the flagship financial services company of the Tata group and a subsidiary of Tata Sons Private Limited.
It is categorized as an Upper Layer NBFC by RBI and caters to salaried and self-employed individuals, entrepreneurs, small businesses, small and medium enterprises and corporates.

Jingze Biopharm (景泽生物) Pre-IPO: A Thin Pipeline of Biosimilars

By Ke Yan, CFA, FRM

Jingze Biopharm, a China-based clinical-stage biopharmaceutical company, is looking to raise at least USD 100 million via a Hong Kong listing. CICC and Guoyuan International are the joint sponsors.
In this note, we look at the company’s product pipeline, its pre-IPO investors, and management.
Our initial view is that the company’s core products, which are made of two biosimilars, are too thin for a listing, given the level of competition in respective market segments.

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Aug 13

Daily Brief Australia: BHP Group Ltd, Nick Scali Ltd, JB Hi-Fi Ltd and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

BHP (BHP AU) Annual Results: Options Market Bets on Post-Earnings Upside
Strong Momentum Underpins Nick Scali’s FY26
JB Hi-Fi’s Re-Rating Triggers Valuation Dilemma

BHP (BHP AU) Annual Results: Options Market Bets on Post-Earnings Upside

By Gaudenz Schneider

Timing: BHP (BHP AU) reports annual results on Tuesday, 19 August 2025, 8:00 AM AEST. Corresponding local times for its international listings are detailed in the Insight.
Highlight: Options positioning ahead of the results suggests at least one trader is making a sizeable bet on post-earnings upside.
Why Read: Gain insight into BHP’s earnings-day price history , volatility setup, and options market positioning to be ready for the upcoming announcement.

Strong Momentum Underpins Nick Scali’s FY26

By FNArena

A strong second-half performance in A&NZ and improving gross margins in the UK have propelled Nick Scali shares to new heights.
-Nick Scali’s FY25 results exceed expectations -A strong 2H for A&NZ, UK gross margin gains -Successful measures to improve cost base -Ord Minnett expects UK profits in FY28

JB Hi-Fi’s Re-Rating Triggers Valuation Dilemma

By FNArena

Another earnings result ‘beat’ by JB Hi-Fi was not enough to prevent the shares from selling-off on the day.
Over-reaction?
The debate is alive.

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Aug 13

Daily Brief Thematic (Sector/Industry): Japan Morning Connection: Market Ignoring Chinese Pullback from NVDA’s H20 with Tech Surge Higher and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Japan Morning Connection: Market Ignoring Chinese Pullback from NVDA’s H20 with Tech Surge Higher
Sustainable Investing Surveyor Focus on VGAS – August 11, 2025

Japan Morning Connection: Market Ignoring Chinese Pullback from NVDA’s H20 with Tech Surge Higher

By Andrew Jackson

Power-Semi’s leading the charge higher on positive broker comments for the sector while AI related takes a backseat.
Intel continues to move up with CEO Tan set to submit proposals to Trump next week which will certainly point to close alignment.
CPI data points to Sep rate cut which helped Homebuilders and airlines were up on Spirit woes.

Sustainable Investing Surveyor Focus on VGAS – August 11, 2025

By Water Tower Research

Last week, the WTR Sustainable Index was up 1.6% W/W versus the S&P 500 Index (up 2.4%), the Russell 2000 Index (up 2.4%), and the Nasdaq Index (up 3.7%).
Energy Technology (41% of the index) was up 2.7%, while Transportation Solutions (33% of the index) was up 1.2%, Climate Tech and Clean Tech (19% of the index) was down 2.2%, and Climate Tech Mining and Processing (7% of the index) was up 8.0%.
Top 10 Performers: CGEH, PEV, CWSFF, LISMF, FCSMF, NRGV, TLOFF, ATLX, ALLIF, ORGN

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Aug 13

Daily Brief South Korea: Korea Stock Exchange KOSPI 200, Samsung Electronics, KT Corp, LS Corp and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Stealthy Long-Short Flow Playing Out Via Local KOSPI 200 Covered Call ETFs
Samsung Electronics (005930 KS) Tactical Outlook : New Rally After Large Pullback?
KT Corp: Excellent 2Q 2025 Earnings Driven by Market Share Gain and Improving AI/Cloud Businesses
LS Corp: Treasury Share Cancellation of 171 Billion Won

Stealthy Long-Short Flow Playing Out Via Local KOSPI 200 Covered Call ETFs

By Sanghyun Park

Covered call ETFs ramped up KOSPI 200 weekly call selling, pushing premiums unusually low despite modest overall volume—likely a key driver behind the premium compression.
KOSPI 100 outperformed KOSPI 200 small-mid caps by 3.7%p last month, probably boosted by call-selling ETFs’ delta-hedge buying concentrated in large caps.
Watch for hedge buy flows ramping up before big events. Timing short-term longs in large caps and shorts in smaller KOSPI 200 names around these windows can yield solid alpha.

Samsung Electronics (005930 KS) Tactical Outlook : New Rally After Large Pullback?

By Nico Rosti

Samsung Electronics (005930 KS) has been rallying for quite a while in the last few weeks, and we have been bullish on the stock since the start of the year.
At the moment the stock is very overbought according to our model, we see potential for a pullback, possibly something larger than a buy the dip.
A 2 or even a 3 weeks correction should not be ruled out at this stage, 64700 is the limit support zone we are looking at, the short profit target.

KT Corp: Excellent 2Q 2025 Earnings Driven by Market Share Gain and Improving AI/Cloud Businesses

The most important reason for KT’s excellent results in 2Q 2025 was due to the major hacking incident at SK Telecom in May 2025.
The company’s growing AI business and successful real estate sales also contributed to the company’s improving results in 2Q 2025.
KT is likely to benefit from higher profits and returns on capital in the next couple of years as the penetration of 5G service surpasses more than 80%.

LS Corp: Treasury Share Cancellation of 171 Billion Won

On 12 August, LS Corp (006260 KS) announced that it will cancel 1 million treasury shares (171 billion won), representing 3.1% of its outstanding shares.
This is significant, especially because the company has not cancelled any shares in the past five years. This move signals the company’s willingness to provide greater returns to its shareholders.
LS plans to increase its dividend by at least 5% annually, to reach dividend payout of at least 30% by 2030.

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Aug 13

Daily Brief Singapore: Grab Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

GRAB Holdings Riding A 19% GMV Surge – Can Its Super App Ecosystem Keep Momentum Alive?

GRAB Holdings Riding A 19% GMV Surge – Can Its Super App Ecosystem Keep Momentum Alive?

By Baptista Research

Grab Holdings’ second-quarter 2025 earnings reflected a mix of strong operational progress and notable challenges, painting a nuanced picture for investors evaluating the company’s prospects.
The quarter showcased impressive momentum in user engagement, with group Monthly Transacting Users (MTUs) continuing to rise and on-demand Gross Merchandise Value (GMV) posting 21% year-on-year growth in US dollar terms and 18% in constant currency.
This growth underscores the platform’s increasing utilization and the loyalty of its user base.

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Aug 13

Daily Brief Event-Driven: Stealthy Long-Short Flow Playing Out Via Local KOSPI 200 Covered Call ETFs and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

Stealthy Long-Short Flow Playing Out Via Local KOSPI 200 Covered Call ETFs
StubWorld: Swire Pac’s NAV Discount Widens. Bs Outperform As
Kangji Medical (9997 HK): Consortium’s Light Preconditional Scheme Offer
Kangji Medical (9997 HK): TPG/QIA/Founder’s Offer Is No Knockout
LS Corp: Treasury Share Cancellation of 171 Billion Won
Prosus–JET Arbitrage: EC Clearance Granted, Minimal Spread Remains

Stealthy Long-Short Flow Playing Out Via Local KOSPI 200 Covered Call ETFs

By Sanghyun Park

Covered call ETFs ramped up KOSPI 200 weekly call selling, pushing premiums unusually low despite modest overall volume—likely a key driver behind the premium compression.
KOSPI 100 outperformed KOSPI 200 small-mid caps by 3.7%p last month, probably boosted by call-selling ETFs’ delta-hedge buying concentrated in large caps.
Watch for hedge buy flows ramping up before big events. Timing short-term longs in large caps and shorts in smaller KOSPI 200 names around these windows can yield solid alpha.

StubWorld: Swire Pac’s NAV Discount Widens. Bs Outperform As

As Swire Pacific (A) (19 HK) plumbs new 12-month lows for its NAV discount and implied stub, Swire’s B shares have significantly outperformed the As over the past month.
Preceding my comments on Pac, Swire Properties (1972 HK) & Cathay Pacific Airways (293 HK), are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Kangji Medical (9997 HK): Consortium’s Light Preconditional Scheme Offer

Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK) disclosed a preconditional privatisation from a consortium at HK$9.25, a 9.9% premium to last close and a 21.7% premium to the undisturbed price.
The precondition relates to SAMR approval. The key condition will be approval by at least 75% disinterested shareholders (<10% of all disinterested shareholders’ rejection). The offer is final.
The scheme vote risk is medium-to-high due to an unattractive offer, a blocking stake below the substantial disclosure threshold, unfavourable AGM voting patterns, and emerging retail opposition.

Kangji Medical (9997 HK): TPG/QIA/Founder’s Offer Is No Knockout

Medical device play Kangji Medical (9997 HK) has announced an Offer, by way of a Scheme, from a consortium led by TPG and the Qatar Investment Authority, together with founders.
The consortium is offering HK$9.25/share, a less-than-inspiring 9.9% premium to last close. The price has been declared final. It is 33.4% below the HK$13.88 2020 IPO price.
Independent shareholders hold 25.25% of shares out. They could bare teeth; and they’ve been somewhat active at AGMs. But on balance, there’s probably enough here for this to get up.

LS Corp: Treasury Share Cancellation of 171 Billion Won

On 12 August, LS Corp (006260 KS) announced that it will cancel 1 million treasury shares (171 billion won), representing 3.1% of its outstanding shares.
This is significant, especially because the company has not cancelled any shares in the past five years. This move signals the company’s willingness to provide greater returns to its shareholders.
LS plans to increase its dividend by at least 5% annually, to reach dividend payout of at least 30% by 2030.

Prosus–JET Arbitrage: EC Clearance Granted, Minimal Spread Remains

By Jesus Rodriguez Aguilar

The EC’s conditional clearance removes the final regulatory risk for Prosus’s €20.30/share JET acquisition, leaving only procedural steps. Current 0.69% spread reflects a near-99% implied probability of deal completion.
Structural remedies (Delivery Hero stake cut, governance exit, voting restrictions) ensure JET and Delivery Hero remain independent competitors. An independent trustee will oversee compliance under the European Commission’s binding commitments.
Early entrants capture ~9.6% annualized return; late entrants ~4.0%. Post-clearance, the market shows minimal mispricing, making the trade appealing only for short-term, low-volatility capital deployment strategies.

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Aug 13

Daily Brief Equity Bottom-Up: KT Corp: Excellent 2Q 2025 Earnings Driven by Market Share Gain and Improving AI/Cloud Businesses and more

By Smartkarma Daily Briefs | Daily Briefs, Equity Bottom-Up

In today’s briefing:

KT Corp: Excellent 2Q 2025 Earnings Driven by Market Share Gain and Improving AI/Cloud Businesses
Taiwan Tech Weekly: Foxconn US$1bn USA Robotics Push; Samsung Doubles Down on US Fabs; Intel Crisis
TSMC (2330.TT; TSM.US): Board Meeting Resolutions; 2nm Technology Information Leakage Issue.
GRAB Holdings Riding A 19% GMV Surge – Can Its Super App Ecosystem Keep Momentum Alive?
Indian Banks: Stick with Baroda and UBI on the Buy List, Downgrading Canara
Kalyan Jewellers: Deleveraging “Pause,” Capital Absorption Rising, Contrasting Capital Allocation
Nanya July Revenue Soars 31% MoM As Micron Revises Current Quarter Guide Up >5%
Tencent Music (TME): 2Q25, Concert Revenue Booming, Margin Hitting Historical High
[ACMR(ACMR US, BUY, TP US$30) Review]: 2Q25 Review: Missing Two Quarters but We Still Love It
[Zai LAB (ZLAB US, BUY, TP US$40) Review]: Past Is Holding ZLAB Back but Future Is What Matters

KT Corp: Excellent 2Q 2025 Earnings Driven by Market Share Gain and Improving AI/Cloud Businesses

The most important reason for KT’s excellent results in 2Q 2025 was due to the major hacking incident at SK Telecom in May 2025.
The company’s growing AI business and successful real estate sales also contributed to the company’s improving results in 2Q 2025.
KT is likely to benefit from higher profits and returns on capital in the next couple of years as the penetration of 5G service surpasses more than 80%.

Taiwan Tech Weekly: Foxconn US$1bn USA Robotics Push; Samsung Doubles Down on US Fabs; Intel Crisis

By Vincent Fernando, CFA

Foxconn Tech invests US$1bn in U.S. robotics, AI, and smart manufacturing over 10 years, expanding into service robotics via RoboTemi stake.
Samsung to surpass US$50bn in U.S. chip investments, adding US$7bn for advanced packaging to compete with TSMC and capture AI/HPC integration opportunities.
Intel faces leadership crisis as CEO Lip Bu Tan’s strategy is criticized; U.S. policy and competitive pressures may accelerate market gains for TSMC and Samsung.

TSMC (2330.TT; TSM.US): Board Meeting Resolutions; 2nm Technology Information Leakage Issue.

By Patrick Liao

Taiwan Semiconductor (TSMC) – ADR (TSM US) disclosed Board of Directors meeting resolutions today.
Taiwan Semiconductor (TSMC) – ADR (TSM US) 2nm technology manufacturing information leakage issue.
Currently, only TSMC, Samsung, and Intel have achieved trial production at the 2nm node.

GRAB Holdings Riding A 19% GMV Surge – Can Its Super App Ecosystem Keep Momentum Alive?

By Baptista Research

Grab Holdings’ second-quarter 2025 earnings reflected a mix of strong operational progress and notable challenges, painting a nuanced picture for investors evaluating the company’s prospects.
The quarter showcased impressive momentum in user engagement, with group Monthly Transacting Users (MTUs) continuing to rise and on-demand Gross Merchandise Value (GMV) posting 21% year-on-year growth in US dollar terms and 18% in constant currency.
This growth underscores the platform’s increasing utilization and the loyalty of its user base.

Indian Banks: Stick with Baroda and UBI on the Buy List, Downgrading Canara

By Victor Galliano

We take profits on our Canara Bank buy recommendation, due to adverse credit quality trends, and we stick with our two high conviction buy names UBI and Bank of Baroda
UBI ranks top in our proprietary scorecard, replacing Canara Bank; UBI has high earnings and dividend yields; it ranks highly on NPL coverage and it has a well-controlled write-off ratio
Baroda remains our core value pick; it has attractive valuations and potential to expand returns which we expect to emerge over the medium term, especially given its control of write-offs

Kalyan Jewellers: Deleveraging “Pause,” Capital Absorption Rising, Contrasting Capital Allocation

By Nimish Maheshwari

Management has paused its previously articulated plan to reduce debt by INR 300–400 crore.
The pause defers balance‑sheet de‑risking and redirects internal cash toward a lean‑credit procurement pilot and a new regional‑brand roll‑out (inventory‑heavy upfront), raising working‑capital intensity just as gross‑margin mix is shifting.
Near‑term FCF could compress despite strong topline; margin delivery needs to outpace capital absorption to sustain the rerating. Market reaction (‑9% on the day) shows low tolerance for capital‑allocation ambiguity.

Nanya July Revenue Soars 31% MoM As Micron Revises Current Quarter Guide Up >5%

By William Keating

Nanya last week announced that revenues for the month of July amounted to NT$5.3 billion, an increase of 31.4% MoM, and an increase of 95% YoY,
Micron this week revised upwards its guidance for the current quarter with a roughly $500 million increase in revenue, attributable primarily price increases for DDR5
Customisation of Micron’s HBM4E base logic die is transforming their key customer relationships from commodity vendor to strategic ASIC design-like partner. That’s good for Micron…

Tencent Music (TME): 2Q25, Concert Revenue Booming, Margin Hitting Historical High

By Ming Lu

In 2Q25, non-subscriber music revenue surged by 47% YoY and total revenue grew by 18% YoY.
The operating margin hit the historical high since TME’s IPO.
We believe the stock has an upside of 9% and a price target of US$27.60 for the year end 2025.

[ACMR(ACMR US, BUY, TP US$30) Review]: 2Q25 Review: Missing Two Quarters but We Still Love It

By Eric Wen

ACMR reported C2Q25 top line, non-GAAP operating profit and GAAP net income (14%), (35%) and (17%) vs. our estimate, and (3.9%), (16%) and (9.9%) vs. consensus.
However, company maintained full year revenue guidance of US$850-950 unchanged and raised long term revenue target by 33% to US$4bn;
We keep rating and TP unchanged. ACMR is one of our TOP BUY’s.

[Zai LAB (ZLAB US, BUY, TP US$40) Review]: Past Is Holding ZLAB Back but Future Is What Matters

By Eric Wen

Zai Lab reported C2Q15 top line, non-GAAP operating loss and GAAP net loss 1.5% above, 31% narrower and 38% narrower than our estimate, and 12% below,
We cut ZEJULA’s peak sales by 12% due to sustained competition. We are also concerned on the slow ramp up of AUGTYRO, which will likely persist.
However, ZLAB has several catalysts ahead, including Bemarituzumab, KarXT, and ZL1310. We keep TP unchanged and maintain BUY.

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Aug 13

Daily Brief China: Zhongji Innolight , Swire Pacific (A), Hangzhou Kangji Medical Instrument Co., Ltd., 52TOYS Development, EVE Energy, Tencent Music, Zai Lab Ltd, Unisound AI Technology, Wynn Macau Ltd and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

China A50 ETFs Rebalance Preview: Three Changes in September
StubWorld: Swire Pac’s NAV Discount Widens. Bs Outperform As
Kangji Medical (9997 HK): Consortium’s Light Preconditional Scheme Offer
Kangji Medical (9997 HK): TPG/QIA/Founder’s Offer Is No Knockout
52Toys Development Pre-IPO: Steady Expansion But in a Highly Fragmented Market
Eve Energy A/H Listing – One of the Leaders but Growth Has Been Slowing
Tencent Music (TME): 2Q25, Concert Revenue Booming, Margin Hitting Historical High
[Zai LAB (ZLAB US, BUY, TP US$40) Review]: Past Is Holding ZLAB Back but Future Is What Matters
Unisound AI (9678.HK): ~US$6.5B Market Cap, ADTV ~US$6M, Is Secondary Share Sale On The Deck?
Lucror Analytics – Morning Views Asia

China A50 ETFs Rebalance Preview: Three Changes in September

By Brian Freitas

Nearing the end of the review period for the September rebalance, there could be three changes for the iShares A50 China (2823 HK)/ CSOP China A50 (HKD) (2822 HK).
WuXi AppTec, Zhongji Innolight and BeiGene could replace China United Network, NARI Technology and China National Nuclear Power in the ETF at the close on 19 September.
Passives will need to trade 0.1-0.7x ADV in the forecast changes. The forecast adds have massively outperformed the forecast deletes over the last 4 months.

StubWorld: Swire Pac’s NAV Discount Widens. Bs Outperform As

As Swire Pacific (A) (19 HK) plumbs new 12-month lows for its NAV discount and implied stub, Swire’s B shares have significantly outperformed the As over the past month.
Preceding my comments on Pac, Swire Properties (1972 HK) & Cathay Pacific Airways (293 HK), are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Kangji Medical (9997 HK): Consortium’s Light Preconditional Scheme Offer

Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK) disclosed a preconditional privatisation from a consortium at HK$9.25, a 9.9% premium to last close and a 21.7% premium to the undisturbed price.
The precondition relates to SAMR approval. The key condition will be approval by at least 75% disinterested shareholders (<10% of all disinterested shareholders’ rejection). The offer is final.
The scheme vote risk is medium-to-high due to an unattractive offer, a blocking stake below the substantial disclosure threshold, unfavourable AGM voting patterns, and emerging retail opposition.

Kangji Medical (9997 HK): TPG/QIA/Founder’s Offer Is No Knockout

Medical device play Kangji Medical (9997 HK) has announced an Offer, by way of a Scheme, from a consortium led by TPG and the Qatar Investment Authority, together with founders.
The consortium is offering HK$9.25/share, a less-than-inspiring 9.9% premium to last close. The price has been declared final. It is 33.4% below the HK$13.88 2020 IPO price.
Independent shareholders hold 25.25% of shares out. They could bare teeth; and they’ve been somewhat active at AGMs. But on balance, there’s probably enough here for this to get up.

52Toys Development Pre-IPO: Steady Expansion But in a Highly Fragmented Market

52TOYS Development (TOY HK) is looking to raise up to US$200m in its upcoming HK IPO.
52Toys Development is one of the leading IP toy companies in China, with a portfolio of over 100 proprietary and licensed intellectual properties (IPs) as of Dec 2024.
In this note, we look at the company’s past performance.

Eve Energy A/H Listing – One of the Leaders but Growth Has Been Slowing

By Sumeet Singh

EVE Energy (300014 CH) (EVE), a lithium battery provider, aims to raise around US$1bn in its H-share listing.
EVE produces lithium batteries which cater to consumer battery, power battery and ESS battery sectors.
In this note, we look at its past performance and other deal dynamics that might impact the listing.

Tencent Music (TME): 2Q25, Concert Revenue Booming, Margin Hitting Historical High

By Ming Lu

In 2Q25, non-subscriber music revenue surged by 47% YoY and total revenue grew by 18% YoY.
The operating margin hit the historical high since TME’s IPO.
We believe the stock has an upside of 9% and a price target of US$27.60 for the year end 2025.

[Zai LAB (ZLAB US, BUY, TP US$40) Review]: Past Is Holding ZLAB Back but Future Is What Matters

By Eric Wen

Zai Lab reported C2Q15 top line, non-GAAP operating loss and GAAP net loss 1.5% above, 31% narrower and 38% narrower than our estimate, and 12% below,
We cut ZEJULA’s peak sales by 12% due to sustained competition. We are also concerned on the slow ramp up of AUGTYRO, which will likely persist.
However, ZLAB has several catalysts ahead, including Bemarituzumab, KarXT, and ZL1310. We keep TP unchanged and maintain BUY.

Unisound AI (9678.HK): ~US$6.5B Market Cap, ADTV ~US$6M, Is Secondary Share Sale On The Deck?

By Andrei Zakharov

Unisound AI Technology, a founder-led AI solution provider with focus on conversational AI products and speech recognition technologies, completed its IPO in Hong Kong in June.
Beijing based AI company priced an initial public offering at HK$205.00/share, raising ~HK$251M of net proceeds. The stock is up ~248% from its IPO price at Monday’s close.
Unisound AI’s market cap today is on a par with market cap of SenseTime and 2x bigger than Beijing Fourth Paradigm. All these companies have the similar growth profiles.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

UST yield movements were muted yesterday, amid an absence of macro news and ahead of the CPI data release today.
The yields on the 2Y and 10Y UST were unchanged at 3.77% and 4.29%, respectively.
Equities retreated, with the S&P 500 and Nasdaq both declining 0.3% to 6,373 and 21,385, respectively.

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Aug 13

Daily Brief India: Bank Of Baroda, Kalyan Jewellers, Silver Consumer Electricals, Tata Capital Limited, Jayaswal Neco Industries, Varmora Granito Limited, Sahajanand Medical Technologies Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

Indian Banks: Stick with Baroda and UBI on the Buy List, Downgrading Canara
Kalyan Jewellers: Deleveraging “Pause,” Capital Absorption Rising, Contrasting Capital Allocation
Silver Consumer Electricals Limited Pre-IPO Tearsheet
Tata Capital IPO: The Investment Case
Beat Ideas: Jayaswal Neco; Potential Turnaround Bet on Deleveraging and Restructuring
Varmora Granito Pre-IPO Tearsheet
Sahajanand Medical Pre-IPO: Superior Product Amid Favorable Industry Make the Issue Heartwarming
Tata Capital Pre-IPO Tearsheet

Indian Banks: Stick with Baroda and UBI on the Buy List, Downgrading Canara

By Victor Galliano

We take profits on our Canara Bank buy recommendation, due to adverse credit quality trends, and we stick with our two high conviction buy names UBI and Bank of Baroda
UBI ranks top in our proprietary scorecard, replacing Canara Bank; UBI has high earnings and dividend yields; it ranks highly on NPL coverage and it has a well-controlled write-off ratio
Baroda remains our core value pick; it has attractive valuations and potential to expand returns which we expect to emerge over the medium term, especially given its control of write-offs

Kalyan Jewellers: Deleveraging “Pause,” Capital Absorption Rising, Contrasting Capital Allocation

By Nimish Maheshwari

Management has paused its previously articulated plan to reduce debt by INR 300–400 crore.
The pause defers balance‑sheet de‑risking and redirects internal cash toward a lean‑credit procurement pilot and a new regional‑brand roll‑out (inventory‑heavy upfront), raising working‑capital intensity just as gross‑margin mix is shifting.
Near‑term FCF could compress despite strong topline; margin delivery needs to outpace capital absorption to sustain the rerating. Market reaction (‑9% on the day) shows low tolerance for capital‑allocation ambiguity.

Silver Consumer Electricals Limited Pre-IPO Tearsheet

Silver Consumer Electricals (2301263D IN) is looking to raise US$160m in its upcoming India IPO. The deal will be run by Motilal Oswal Investment Advisors, ICICI, JM Financial, Choice Capital Advisors.
Silver Consumer Electricals Limited (SCEL) is one of India’s leading manufacturers of electrical consumer durables and agricultural equipment, operating through own-branded sales (“Silver” and “Bediya”) and OEM supply
The company operates India’s largest single-location, vertically integrated ECD and agri-equipment plant in Rajkot, Gujarat.

Tata Capital IPO: The Investment Case

Tata Capital Limited (TATACAP IN) is the third-largest non-banking financial company (NBFC) in India. It is seeking to raise US$2.0 billion.
On 8 May 2025, Tata Capital merged with Tata Motors Finance Solutions Limited (TMFL) through the issue of 183.9 million shares.
The fundamentals are mixed. Positives include large size, high growth rates, low opex ratio and good asset quality. Negatives include below peer average NIM, interest spread and ROE.

Beat Ideas: Jayaswal Neco; Potential Turnaround Bet on Deleveraging and Restructuring

By Nimish Maheshwari

Jayaswal Neco has transitioned from financial distress to operational momentum, with blast furnace upgrades completed, capacity ramp-up underway, and debt refinancing on the horizon.
Removal of ARC stake sale overhang and scope for capacity expansion strengthen the investment case.
If debt gets refinanced at 50% lower interest rate by Dec-25, it could double company’s PAT leading to potential re-rating

Varmora Granito Pre-IPO Tearsheet