Daily Briefs

There are 5 constituent changes for the CSI Hong Kong Connect Internet Index in June. Plus there are capping changes for some stocks.
A lot of the adds have moved significantly in the last couple of days, so the impact over the next couple of days will be smaller.
There could be opportunities to trade the reversion strategy. Getting borrow may not be easy on some names.

Zhejiang Sanhua Intelligent Controls (2050 HK): Big Raise Supported by Cornerstones

Zhejiang Sanhua Intellignt Controls Co. (002050 CH)‘s global offering opens today and the raise could reach up to US$1.4bn if the offer-size adjustment option and the overallotment option are exercised.
There is a large allocation to cornerstone investors. The discount of around 22.7% to the A-shares is attractive given the recent trend for Midea (300 HK) and CATL (3750 HK).
The H-shares should be added to Southbound Stock Connect in July, to the HSCI in September, and to a global index in December.

Tencent To Acquire Nexon? Time and Price Lining Up for a Final Deal?

By Douglas Kim

Tencent has been interested in acquiring Nexon for more than six years. However, the timing and price were not right for such a deal to take place in the past.
The higher probability scenario is for Kim’s family members to sell when the timing and price is right. This time around, a $15 billion could be the right price.
Late founder Kim’s family members own a 44.4% stake in Nexon through NXC Corp and its affiliate NXMB BV. Kim’s wife and daughters own a 67.6% stake in NXC Corp.

[Quiddity Index] MV Global Defense Jun25 Rebalance Results: Flow Expectations

The MV Global Defense Industry Index represents the performance of companies in national defense industries.
There will be 3 ADDs for the MV Global Defense Index in June 2025.
We expect one-way flow of US$505mn for June 2025, which translates to a turnover of 8.8%.

HLB Merger Arb’s Unique Timing Dynamics for a Juicy 8% Swap Spread

By Sanghyun Park

Some local desks think the company pushed the timeline back to align with a potential FDA Class 1 approval for Rivoceranib expected by July.
No word yet if it’s Class 1 or 2; Class 2 means November decision. Despite risks, local hedge desks are building arb plays, betting on the July FDA timing dynamics.
No FDA decision by July means Class 2 and a sell-off, hitting HLB Co. hardest. Class 1 approval boosts both stocks, cuts cancellation risk, and sets the 8% spread floor.

A/H Premium Tracker (To 13 June 2025): HUGE H-Share Outperf Across The Board, “Beautiful Skew Move”

AH spreads are SHARPLY narrower. The effect is dramatic across the “skew” i.e. very wide AH premia contracted more than very narrow premia. BYD is on its own.
This smells very much like someone knows something. I expect RMB dual counters may be in the works. Caixin had an article Friday.
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.

HEW: Geopolitics Blow Hot And Warm

By Phil Rush

Israel’s attack on Iran squeezes supply in an unwelcome shock that is harder for central bankers to look through post-pandemic. Warming US-China relations had less impact.
Avoidance measures have helped mitigate the tariff shock so far, with US CPI holding steady. The importance of recent disappointing UK demand data is easy to overstate.
The BoE is set to hold rates, probably with two dovish dissents and no commitment to August. UK inflation should slow with airfares normalising and a vehicle tax correction.

MV Australia Resources Index Rebalance: Two Adds, Float & Capping Changes

Capricorn Metals (CMM AU) and Genesis Minerals (GMD AU) will be added to the Vaneck Vectors Australian Re (MVR AU) in June.
Constituent changes, float changes and capping changes result in an estimated one-way turnover of 8% and a round-trip trade of A$49m.
There has been short covering in both adds over the last couple of years. While short interest is relatively smaller in Capricorn Metals, it is much higher in Genesis Minerals.

MarketVector Vietnam Local Index Rebalance: One Add, Capping & Float Changes

BAF Viet Nam Agriculture JSC (BAF VN) will be added to the MarketVector Vietnam Local Index at the close on 20 June.
Estimated one-way turnover is 9% and that results in a round-trip trade of US$74m. There are 5 stocks with more than 1x ADV to trade from passives.
Vingroup Jsc (VIC VN) and Vinhomes (VHM VN) stock prices have soared over the last few months and capping results in selling at this rebalance.

Korea Small Cap Gem #36: FnGuide [Increasing Moat for Its Index Business]

By Douglas Kim

FnGuide has been able to capitalize on its excellent brand name in the financial industry (especially for research used in equity trading) to profitably expand into the index development business.
Although the index business accounted for 25% of its sales in 2024, it has been the fastest growing business in the past six years.
Valuations are reasonable and it is trading at 27% below four year historical EV/EBITDA basis. We like FnGuide as a long-term investment story.

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Jun 15

Daily Brief ESG: One of the Clues to Know How Serious a Company Is About Shifting to Management that Creates Value and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

One of the Clues to Know How Serious a Company Is About Shifting to Management that Creates Value

One of the Clues to Know How Serious a Company Is About Shifting to Management that Creates Value

By Aki Matsumoto

The driver of higher stock valuations is overseas investors, and engagement by overseas investors is likely to have a positive effect on return on capital and stock valuations.
In many aspects, companies seem to be unwilling to face shareholders. If they don’t confront shareholders and proceed with management reforms, they will not be able to implement serious initiatives.
It can be hypothesized that the behavior of prioritizing control over the AGM over engaging with shareholders provides a clue as to the seriousness of a company’s efforts.

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Jun 15

Daily Brief Thematic (Sector/Industry): APAC Healthcare Weekly (June 15)- CSPC and more

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

In today’s briefing:

APAC Healthcare Weekly (June 15)- CSPC, Wuxi Bio, Samsung Bio, Daiichi Sankyo, SanBio, Cochlear

APAC Healthcare Weekly (June 15)- CSPC, Wuxi Bio, Samsung Bio, Daiichi Sankyo, SanBio, Cochlear

By Tina Banerjee

CSPC entered research collaboration with AstraZeneca for oral small molecule drug discovery utilizing CSPC’s AI-driven drug discovery platform. Wuxi Biologics kicked off construction of new microbial manufacturing site in China.
Samsung Biologics signed a CDMO contract worth more than KRW100B (~$73M) with an unnamed European pharmaceutical company. Daiichi Sankyo initiates Phase 3 trial of Enhertu in first-line breast cancer.
SanBio has completed filing a partial change application of marketing approval of Akuugo. Cochlear introduces Nucleus Nexa system, the world’s first and only smart cochlear implant system.

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Jun 15

Daily Brief Industrials: Hyundai Rotem Company, Azoom, Hino Motors Ltd, Sandvik AB, Copart Inc, Cgn Mining, Enersys and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

[Quiddity Index] MV Global Defense Jun25 Rebalance Results: Flow Expectations
MV Global Defense Industry Index Rebalance: US$1.1bn Round-Trip Trade as Stocks Soar
TOPIX Inclusions: Who Is Ready (Jun 2025)
Last Week in Event SPACE: Hino Motors, Hong Kong’s Peg, Zijin Mining, MINISO
Sandvik’s Bold Manufacturing Play: Can It Weather the Next Global Crisis? – Initiation of Coverage
Copart Is Winning Big From Insurance Chaos—Here’s How It’s Snatching Market Share!
[Quiddity Index] MV Global Uranium & Nuclear Energy Jun25 Rebalance Results: Flow Expectations
EnerSys Just Unlocked a Multi-Billion Dollar Opportunity With Its Motive Power Breakthrough; What Lies Ahead?

[Quiddity Index] MV Global Defense Jun25 Rebalance Results: Flow Expectations

The MV Global Defense Industry Index represents the performance of companies in national defense industries.
There will be 3 ADDs for the MV Global Defense Index in June 2025.
We expect one-way flow of US$505mn for June 2025, which translates to a turnover of 8.8%.

MV Global Defense Industry Index Rebalance: US$1.1bn Round-Trip Trade as Stocks Soar

Hyundai Rotem, RENK Group and Karman Holdings will be added to the MV Global Defense Industry Index after the close of trading on 20 June.
Constituent changes, float changes and capping changes result in an estimated one-way turnover of 8.8% and a round-trip trade of US$1.1bn.
The index has moved up steadily over the last few years and the ETF has taken in a big chunk of money over the last 6 months.

TOPIX Inclusions: Who Is Ready (Jun 2025)

By Janaghan Jeyakumar, CFA

Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
GMO Financial Gate (4051 JP) and Azoom (3496 JP) have confirmed their moves to the Prime Market which would trigger TOPIX Inclusions for these names at the end of July.
Kitazato (368A JP) is expected to get listed in the Prime market in late-June and that name would also have a TOPIX Inclusion at the end of July.

Last Week in Event SPACE: Hino Motors, Hong Kong’s Peg, Zijin Mining, MINISO

Is Hino (7205 JP) a short or a long at ¥366/share? Suggest short, but also selling more as the stock goes up, and buying back the short on big dips.
A Bloomberg op-ed piece concludes it is time to move on from “from an archaic currency regime“. That conclusion on the Hong Kong peg appears presumptuous. And uninformed.
A spin-off makes sense as Zijin (2899 HK) capitalises on the upward cycle in gold prices. However, Zijin is trading at a single-digit NAV discount. Before any holding company discount.

Sandvik’s Bold Manufacturing Play: Can It Weather the Next Global Crisis? – Initiation of Coverage

Sandvik’s first quarter of 2025 showcased varied performance across its business segments and regions, colored by a mix of positive and challenging elements within the broader macroeconomic context.
The company’s Mining segment showed significant momentum, driven by robust demand and major orders in Australia and South America, contributing to a 7% increase in organic order intake.
Conversely, the Cutting Tools and Infrastructure divisions displayed continued strain from economic uncertainties, with notable declines in key markets such as Europe and North America.

Copart Is Winning Big From Insurance Chaos—Here’s How It’s Snatching Market Share!

Copart, Inc.’s Q3 2025 earnings highlight several noteworthy aspects of its performance and market dynamics, offering a balanced view of the company’s current standing and future challenges.
The company’s global unit sales increased by 1%, with a more notable rise of 2% on a per-business-day basis.
This growth, however, masks a flat performance in the U.S. segment and a decrease in U.S. insurance unit volume by nearly 1% year-over-year.

[Quiddity Index] MV Global Uranium & Nuclear Energy Jun25 Rebalance Results: Flow Expectations

The MV Global Uranium & Nuclear Energy index represents the performance of the biggest and the most liquid companies in the Uranium and Nuclear industries.
Cgn Mining (1164 HK) will be an ADD and Endesa SA (ELE SM) will be a DELETE in June 2025.
There are also some big capping flows so we expect a one-way flow of US$227mn for June 2025, which translates to a turnover of 15.7%.

EnerSys Just Unlocked a Multi-Billion Dollar Opportunity With Its Motive Power Breakthrough; What Lies Ahead?

EnerSys reported its fourth quarter and full year fiscal 2025 results, reflecting both strengths and challenges that are integral to its ongoing business strategy and market environment.
The company achieved a notable 7% increase in revenue for the fourth quarter, marking its second-highest revenue quarter ever, with a record adjusted diluted EPS of $1.86.
A significant contribution came from the Motive Power segment, which exhibited strong margin growth, and overall, EnerSys reported solid contributions from the recently acquired Bren-Tronics.

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Jun 15

Daily Brief Event-Driven: HLB Merger Arb’s Unique Timing Dynamics for a Juicy 8% Swap Spread and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

HLB Merger Arb’s Unique Timing Dynamics for a Juicy 8% Swap Spread
A/H Premium Tracker (To 13 June 2025): HUGE H-Share Outperf Across The Board, “Beautiful Skew Move”
HK Connect SOUTHBOUND Flows (To 13 June 2025); Volumes Up, TECH Down, HEALTHCARE Bought Big
Last Week in Event SPACE: Hino Motors, Hong Kong’s Peg, Zijin Mining, MINISO
(Mostly) Asia-Pac M&A: New World Res., Fuji Corp, TRYT, Shinsung Tongsang, Austal, Mitsu. Shokuhin

HLB Merger Arb’s Unique Timing Dynamics for a Juicy 8% Swap Spread

By Sanghyun Park

Some local desks think the company pushed the timeline back to align with a potential FDA Class 1 approval for Rivoceranib expected by July.
No word yet if it’s Class 1 or 2; Class 2 means November decision. Despite risks, local hedge desks are building arb plays, betting on the July FDA timing dynamics.
No FDA decision by July means Class 2 and a sell-off, hitting HLB Co. hardest. Class 1 approval boosts both stocks, cuts cancellation risk, and sets the 8% spread floor.

A/H Premium Tracker (To 13 June 2025): HUGE H-Share Outperf Across The Board, “Beautiful Skew Move”

AH spreads are SHARPLY narrower. The effect is dramatic across the “skew” i.e. very wide AH premia contracted more than very narrow premia. BYD is on its own.
This smells very much like someone knows something. I expect RMB dual counters may be in the works. Caixin had an article Friday.
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.

HK Connect SOUTHBOUND Flows (To 13 June 2025); Volumes Up, TECH Down, HEALTHCARE Bought Big

Gross SOUTHBOUND volumes up to US$15+bn a day this past 5-day week. Net buying still positive but still below US$500mm/day.
Among the top buys as a percentage of volume, HEALTHCARE, FINANCIALS, ENERGY stand out, dramatically. Among top sells, INFO TECH again. 9 weeks in a row negative. Tencent bigly sold.
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.

Last Week in Event SPACE: Hino Motors, Hong Kong’s Peg, Zijin Mining, MINISO

Is Hino (7205 JP) a short or a long at ¥366/share? Suggest short, but also selling more as the stock goes up, and buying back the short on big dips.
A Bloomberg op-ed piece concludes it is time to move on from “from an archaic currency regime“. That conclusion on the Hong Kong peg appears presumptuous. And uninformed.
A spin-off makes sense as Zijin (2899 HK) capitalises on the upward cycle in gold prices. However, Zijin is trading at a single-digit NAV discount. Before any holding company discount.

(Mostly) Asia-Pac M&A: New World Res., Fuji Corp, TRYT, Shinsung Tongsang, Austal, Mitsu. Shokuhin

I tally 47 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
Three new deal were discussed on Smartkarma this week: New World Resources (NWC AU)‘s Scheme, and Tender Offers for Fuji Corp (7605 JP), TRYT (9164 JP), and Shinsung Tongsang (005390 KS).
Fer.Key updates/news took place on: Austal Ltd (ASB AU), HKBN Ltd (1310 HK), Shandong Fengxiang (9977 HK), and Mitsubishi Shokuhin (7451 JP).

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Jun 15

Daily Brief ECM: Weekly Deals Digest (15 Jun) – Haitian and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

Weekly Deals Digest (15 Jun) – Haitian, Sanhua, Toyota Industries, Tryt, Fengxiang, HKBN, Mayne
China Healthcare Weekly (Jun.15) – Outlook of GLP-1 Market, WuXi Bio’s Placement, Keymed’s Placement

Weekly Deals Digest (15 Jun) – Haitian, Sanhua, Toyota Industries, Tryt, Fengxiang, HKBN, Mayne

By Arun George

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: Foshan Haitian Flavouring & Food Company (3288 HK) and Zhejiang Sanhua Intelligent Controls (2050 HK) H share listings and CaoCao Inc (1646553D CH) IPO.
Event-Driven developments: Toyota Industries (6201 JP), TRYT (9164 JP), With Us Corp (9696 JP), Shandong Fengxiang (9977 HK), HKBN Ltd (1310 HK), Mayne Pharma (MYX AU).

China Healthcare Weekly (Jun.15) – Outlook of GLP-1 Market, WuXi Bio’s Placement, Keymed’s Placement

By Xinyao (Criss) Wang

The GLP-1 market has officially transitioned from a duopoly to a state where Tirzepatide is eating away at Semaglutide’s market share, which should be a highly valued advance signal.
WuXi Bio’s Placing price of HK$26.51-26.88/share is expansive if based on 2025 forecast.Obviously, WuXi Bio hopes to leverage the positive market sentiment to complete the placement at high share price
Keymed plans to raise about HK$854million through a top-up placement. However, reasonable valuation for Keymed is RMB5-10 billion. In other words, the Placing Price of HK$45.48 per Share is expensive.

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Jun 15

Daily Brief Energy/Materials: Genesis Minerals, IperionX Limited, Endeavour Mining, Newmont , Harmony Gold Mining, Ovintiv and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

MV Australia Resources Index Rebalance: Two Adds, Float & Capping Changes
MV Global Rare Earth/Strategic Metals Index Rebalance: One Add, One Delete & Other Changes
[Quiddity Index] MV Junior Gold Miners Jun25 Rebalance Results: Flow Expectations
Newmont Corporation (NYSE: NEM) – Strong Q1, Tier 1 Growth Ahead, Significant Upside if Gold Holds
Harmony Gold (HAR SJ / HMY US): Strong Results, Copper Diversification, Attractive Valuation
Ovintiv Inc.: An Enhanced Well Performance & Technological Integration in Montney Are Critical Growth Levers!

MV Australia Resources Index Rebalance: Two Adds, Float & Capping Changes

Capricorn Metals (CMM AU) and Genesis Minerals (GMD AU) will be added to the Vaneck Vectors Australian Re (MVR AU) in June.
Constituent changes, float changes and capping changes result in an estimated one-way turnover of 8% and a round-trip trade of A$49m.
There has been short covering in both adds over the last couple of years. While short interest is relatively smaller in Capricorn Metals, it is much higher in Genesis Minerals.

MV Global Rare Earth/Strategic Metals Index Rebalance: One Add, One Delete & Other Changes

IperionX Limited (IPX AU) will be added to the VanEck Rare Earth/Strategic Me (REMX US) and Patriot Battery Metals (PMT CN) will be deleted.
The constituent changes, float changes and capping changes result in an estimated one-way turnover of 6.3% and in a round-trip trade of US$48m.
The largest inflows will be in IperionX, Iluka Resources and Albemarle, while the largest outflows will be from Patriot Battery Metals, AMG Critical Materials, Shenghe Resources and Lithium Americas.

[Quiddity Index] MV Junior Gold Miners Jun25 Rebalance Results: Flow Expectations

The MV Global J-Gold Miners index represents the performance small-cap gold and silver mining companies listed around the world.
There will be no index changes for the June 2025 rebal event.
We expect one-way flow of US$271mm for the June 2025 rebal, which is a bit lower than normal for a June rebal.

Newmont Corporation (NYSE: NEM) – Strong Q1, Tier 1 Growth Ahead, Significant Upside if Gold Holds

By Rahul Jain

Recent Results: Newmont delivered a strong Q1 2025 performance with record free cash flow of $1.2 billion, driven by higher gold prices and increased production from Tier 1 assets.
Future Plans: The company plans to ramp up Tier 1 output to ~6.7 Moz by 2028, led by projects like Ahafo North, Tanami Expansion 2, and Cadia block-cave development.
Valuation Upside: If current gold prices around $3,400/oz persist, Newmont’s earnings could double vs. consensus, unlocking over 50% potential upside from current share levels.

Harmony Gold (HAR SJ / HMY US): Strong Results, Copper Diversification, Attractive Valuation

By Rahul Jain

Harmony Gold delivered strong earnings and margin expansion, driven by higher gold prices and improved grades across key underground assets.
The company is expanding into copper via CSA Mine and Eva, aiming to diversify production and enhance long-term cash flows.
Valuations remain attractive, though risks include commodity price volatility, South African exposure, and integration of new international assets.

Ovintiv Inc.: An Enhanced Well Performance & Technological Integration in Montney Are Critical Growth Levers!

Ovintiv’s recent earnings for the first quarter of 2025 presented a landscape of both strengths and challenges facing the company.
The macroeconomic backdrop, characterized by lower oil prices, has impacted expectations significantly.
The company had initially projected about $2.1 billion in free cash flow for the year at $70 WTI and $4 NYMEX gas prices, but has now revised that to $1.5 billion with a more conservative $60 WTI for the remainder of the year.

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Jun 15

Daily Brief TMT/Internet: Lam Research, Baidu, iQIYI Inc, NVIDIA Corp, Palantir Technologies , Nanometrics Inc, Netapp Inc, Qualys Inc, C3.ai Inc, Dell Technologies and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

MV US Listed Semiconductor 25 Index Rebalance: US$1.2bn Round-Trip Trade
Baidu Inc.: Dealing With The Uncertain Commercial Viability of Autonomous Driving
iQIYI Inc.: Growing Its Content Ecosystem & Executing Overseas Market Expansion to Help Alter The Playing Field?
[Quiddity Index] MV US Semiconductor Jun25 Rebalance Results: Flow Expectations
Palantir’s Parabolic Surge: Meme Stock Mania Or AI Megatrend in Motion?
Onto Innovation Just Doubled Its Node Revenue—What’s Driving This Metrology Surge?
NetApp Inc.: 6 Critical Factors That Will Define Its Success in 2025 & Beyond!
Qualys Inc.: Strengthening Partnership Ecosystem to Play A Significant Role In Its Growth Trajectory!
C3.ai Strikes Gold with Powerhouse Partnerships—Is Big Tech Its Secret Weapon?
Dell Technologies: AI Server Integration & Backlog Growth As A Pivotal Growth Lever!

MV US Listed Semiconductor 25 Index Rebalance: US$1.2bn Round-Trip Trade

There are no constituent changes for the VanEck Vectors Semiconductor (SMH US) ETF in June but there are a lot of float and capping changes.
Estimated one-way turnover is 2.5% resulting in a round-trip trade of US$1.2bn. Impact on the stocks is small given they are highly liquid.
There will be more flows in a lot of these stocks from trackers of the Technology Select Sector SPDR (XLK US). Broadcom (AVGO US) will have largest outflows.

Baidu Inc.: Dealing With The Uncertain Commercial Viability of Autonomous Driving

Baidu, Inc. delivered a solid performance in the first quarter of 2025, with its Baidu Core division reporting a 7% year-over-year revenue increase, reaching RMB 25.5 billion.
This growth was primarily driven by a substantial surge in its AI cloud business, which saw a 42% increase year-over-year, contributing significantly to Baidu Core’s overall revenue.
A notable development within this business unit is the expansion of the AI cloud’s role in Baidu’s operations, now accounting for 26% of Baidu Core’s revenue, up from 20% in the previous year.

iQIYI Inc.: Growing Its Content Ecosystem & Executing Overseas Market Expansion to Help Alter The Playing Field?

iQIYI’s first-quarter 2025 results exhibited growth across several key business segments, though certain challenges remain.
The company experienced sequential growth in total revenues, largely attributed to their emphasis on premium content production and strong performance in long-form and micro-dramas.
This focus has effectively positioned iQIYI as a leading platform for both long-form and short-form entertainment content, contributing positively to user engagement and content consumption.

[Quiddity Index] MV US Semiconductor Jun25 Rebalance Results: Flow Expectations

The MV US Listed Semiconductor 25 index represents the performance of the biggest US-listed companies in the semiconductor industry.
There will be no index changes for the June 2025 rebalance event.
We expect a one-way flow of US$700mn for June 2025.

Palantir’s Parabolic Surge: Meme Stock Mania Or AI Megatrend in Motion?

Palantir Technologies has become one of Wall Street’s most polarizing success stories in 2025.
Riding a 76% year-to-date gain and clocking in at more than 460% over the past 12 months, the company’s stock has reached new highs, closing at a record for three consecutive sessions earlier this month.
The surge puts it in league with speculative darlings like CoreWeave and even evokes comparisons to meme stock veterans such as GameStop.

Onto Innovation Just Doubled Its Node Revenue—What’s Driving This Metrology Surge?

Onto Innovation’s latest financial results for the first quarter of 2025 present a mixed picture of record revenue growth alongside operational challenges stemming from external factors like tariffs and evolving market demands.
The company reported $267 million in revenue, marking a record quarter driven primarily by expansions in advanced nodes and advanced packaging sectors.
This growth reflects robust market demand, particularly associated with AI compute engines and cloud infrastructure investments.

NetApp Inc.: 6 Critical Factors That Will Define Its Success in 2025 & Beyond!

NetApp reported record revenue for the fourth quarter and fiscal year 2025, showcasing strong growth in the all flash storage market and first-party and marketplace storage services.
The company achieved all-time highs in gross profit, operating profit, operating margin, and earnings per share (EPS), which indicates a robust financial performance and a potential strong position in the evolving enterprise AI market.
A critical component of NetApp’s growth strategy is focusing on AI-powered infrastructure, with all-flash systems and public cloud services contributing to over two-thirds of the total revenue.

Qualys Inc.: Strengthening Partnership Ecosystem to Play A Significant Role In Its Growth Trajectory!

Qualys, a leading provider of cybersecurity solutions, presented a mixed financial performance for the first quarter of 2025, highlighted by certain growth indicators alongside pronounced macroeconomic challenges.
Total revenue for the quarter increased by 10% year-over-year to $159.9 million, surpassing initial expectations.
This growth was notably fueled by robust performance of the channel sales, which accounted for 49% of total revenues, reflecting a 19% increase in channel-related revenue compared to a 2% growth in direct revenue.

C3.ai Strikes Gold with Powerhouse Partnerships—Is Big Tech Its Secret Weapon?

C3.ai has demonstrated dynamic progress and significant strides in its fiscal year ending April 30, 2025, highlighted by impressive growth metrics and strategic advancements.
The company reported a 25% year-over year revenue increase, reaching $389.1 million, marking three consecutive years of accelerating revenue growth.
This upward trajectory underscores the company’s effective strategies in the expansive Enterprise AI market.

Dell Technologies: AI Server Integration & Backlog Growth As A Pivotal Growth Lever!

Dell Technologies Inc.’s fiscal year 2026 first quarter financial results provide a mixed but generally positive view of the company’s current performance and future prospects.
The company reported revenue of $23.4 billion, a growth of 5% year-over-year.
This increase was driven by robust performance across its core markets, particularly in Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG), each growing by 8%.

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Jun 15

Daily Brief Equity Bottom-Up: Korea Small Cap Gem #36: FnGuide [Increasing Moat for Its Index Business] and more

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

In today’s briefing:

Korea Small Cap Gem #36: FnGuide [Increasing Moat for Its Index Business]
Sun Pharmaceutical (SUNP IN): Timely Succession Plan to Augur Well for Next-Level of Growth
Newmont Corporation (NYSE: NEM) – Strong Q1, Tier 1 Growth Ahead, Significant Upside if Gold Holds
Baidu Inc.: Dealing With The Uncertain Commercial Viability of Autonomous Driving
Relative Value Roundup: Performance Recap of Financial Pair Trades
Alibaba’s Bold AI & Cloud Bet Is Driving Our Optimism–But It Comes at A BIG COST!
Palantir’s Parabolic Surge: Meme Stock Mania Or AI Megatrend in Motion?
iQIYI Inc.: Growing Its Content Ecosystem & Executing Overseas Market Expansion to Help Alter The Playing Field?
Dell Technologies: AI Server Integration & Backlog Growth As A Pivotal Growth Lever!
Copart Is Winning Big From Insurance Chaos—Here’s How It’s Snatching Market Share!

Korea Small Cap Gem #36: FnGuide [Increasing Moat for Its Index Business]

By Douglas Kim

FnGuide has been able to capitalize on its excellent brand name in the financial industry (especially for research used in equity trading) to profitably expand into the index development business.
Although the index business accounted for 25% of its sales in 2024, it has been the fastest growing business in the past six years.
Valuations are reasonable and it is trading at 27% below four year historical EV/EBITDA basis. We like FnGuide as a long-term investment story.

Sun Pharmaceutical (SUNP IN): Timely Succession Plan to Augur Well for Next-Level of Growth

By Tina Banerjee

Sun Pharmaceutical Industries (SUNP IN) is appointing Kirti Ganorkar as the Managing Director to succeed Dilip Shanghvi, effective September 1, 2025, with the entire business reporting to him.
In another development, Richard Ascroft will be joining as CEO – North America, succeeding Abhay Gandhi. Aalok Shanghvi has been additionally entrusted with the responsibility for the North America business.
Succession plan and management rejig come at a time when SPIL is at an inflection point, with its India business being on a strong foothold and specialty business gaining traction.

Newmont Corporation (NYSE: NEM) – Strong Q1, Tier 1 Growth Ahead, Significant Upside if Gold Holds

By Rahul Jain

Recent Results: Newmont delivered a strong Q1 2025 performance with record free cash flow of $1.2 billion, driven by higher gold prices and increased production from Tier 1 assets.
Future Plans: The company plans to ramp up Tier 1 output to ~6.7 Moz by 2028, led by projects like Ahafo North, Tanami Expansion 2, and Cadia block-cave development.
Valuation Upside: If current gold prices around $3,400/oz persist, Newmont’s earnings could double vs. consensus, unlocking over 50% potential upside from current share levels.

Baidu Inc.: Dealing With The Uncertain Commercial Viability of Autonomous Driving

Baidu, Inc. delivered a solid performance in the first quarter of 2025, with its Baidu Core division reporting a 7% year-over-year revenue increase, reaching RMB 25.5 billion.
This growth was primarily driven by a substantial surge in its AI cloud business, which saw a 42% increase year-over-year, contributing significantly to Baidu Core’s overall revenue.
A notable development within this business unit is the expansion of the AI cloud’s role in Baidu’s operations, now accounting for 26% of Baidu Core’s revenue, up from 20% in the previous year.

Relative Value Roundup: Performance Recap of Financial Pair Trades

By Gaudenz Schneider

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.
Highlight: Two pair trade opportunities in the Indian financial sector persist, with price ratios exceeding two standard deviations from their historical means.
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.

Alibaba’s Bold AI & Cloud Bet Is Driving Our Optimism–But It Comes at A BIG COST!

Alibaba Group delivered a mixed performance in the March quarter and for the full fiscal year 2025, showing resilience in its core operations while falling short of analyst expectations on key financial metrics.
The company reported revenue of $32.58 billion for the quarter, marking a 7% year-over-year increase, but this fell below projections of $33.28 billion.
Net income for the period came in at $1.71 billion, significantly lower than the anticipated $2.93 billion.

Palantir’s Parabolic Surge: Meme Stock Mania Or AI Megatrend in Motion?

Palantir Technologies has become one of Wall Street’s most polarizing success stories in 2025.
Riding a 76% year-to-date gain and clocking in at more than 460% over the past 12 months, the company’s stock has reached new highs, closing at a record for three consecutive sessions earlier this month.
The surge puts it in league with speculative darlings like CoreWeave and even evokes comparisons to meme stock veterans such as GameStop.

iQIYI Inc.: Growing Its Content Ecosystem & Executing Overseas Market Expansion to Help Alter The Playing Field?

iQIYI’s first-quarter 2025 results exhibited growth across several key business segments, though certain challenges remain.
The company experienced sequential growth in total revenues, largely attributed to their emphasis on premium content production and strong performance in long-form and micro-dramas.
This focus has effectively positioned iQIYI as a leading platform for both long-form and short-form entertainment content, contributing positively to user engagement and content consumption.

Dell Technologies: AI Server Integration & Backlog Growth As A Pivotal Growth Lever!

Dell Technologies Inc.’s fiscal year 2026 first quarter financial results provide a mixed but generally positive view of the company’s current performance and future prospects.
The company reported revenue of $23.4 billion, a growth of 5% year-over-year.
This increase was driven by robust performance across its core markets, particularly in Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG), each growing by 8%.

Copart Is Winning Big From Insurance Chaos—Here’s How It’s Snatching Market Share!

Copart, Inc.’s Q3 2025 earnings highlight several noteworthy aspects of its performance and market dynamics, offering a balanced view of the company’s current standing and future challenges.
The company’s global unit sales increased by 1%, with a more notable rise of 2% on a per-business-day basis.
This growth, however, masks a flat performance in the U.S. segment and a decrease in U.S. insurance unit volume by nearly 1% year-over-year.

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Jun 15

Daily Brief Industrials: Hyundai Rotem Company, Azoom, Hino Motors Ltd, Sandvik AB, Copart Inc, Cgn Mining, Enersys and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

[Quiddity Index] MV Global Defense Jun25 Rebalance Results: Flow Expectations
MV Global Defense Industry Index Rebalance: US$1.1bn Round-Trip Trade as Stocks Soar
TOPIX Inclusions: Who Is Ready (Jun 2025)
Last Week in Event SPACE: Hino Motors, Hong Kong’s Peg, Zijin Mining, MINISO
Sandvik’s Bold Manufacturing Play: Can It Weather the Next Global Crisis? – Initiation of Coverage
Copart Is Winning Big From Insurance Chaos—Here’s How It’s Snatching Market Share!
[Quiddity Index] MV Global Uranium & Nuclear Energy Jun25 Rebalance Results: Flow Expectations
EnerSys Just Unlocked a Multi-Billion Dollar Opportunity With Its Motive Power Breakthrough; What Lies Ahead?

[Quiddity Index] MV Global Defense Jun25 Rebalance Results: Flow Expectations

The MV Global Defense Industry Index represents the performance of companies in national defense industries.
There will be 3 ADDs for the MV Global Defense Index in June 2025.
We expect one-way flow of US$505mn for June 2025, which translates to a turnover of 8.8%.

MV Global Defense Industry Index Rebalance: US$1.1bn Round-Trip Trade as Stocks Soar

Hyundai Rotem, RENK Group and Karman Holdings will be added to the MV Global Defense Industry Index after the close of trading on 20 June.
Constituent changes, float changes and capping changes result in an estimated one-way turnover of 8.8% and a round-trip trade of US$1.1bn.
The index has moved up steadily over the last few years and the ETF has taken in a big chunk of money over the last 6 months.

TOPIX Inclusions: Who Is Ready (Jun 2025)

By Janaghan Jeyakumar, CFA

Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
GMO Financial Gate (4051 JP) and Azoom (3496 JP) have confirmed their moves to the Prime Market which would trigger TOPIX Inclusions for these names at the end of July.
Kitazato (368A JP) is expected to get listed in the Prime market in late-June and that name would also have a TOPIX Inclusion at the end of July.

Last Week in Event SPACE: Hino Motors, Hong Kong’s Peg, Zijin Mining, MINISO

Is Hino (7205 JP) a short or a long at ¥366/share? Suggest short, but also selling more as the stock goes up, and buying back the short on big dips.
A Bloomberg op-ed piece concludes it is time to move on from “from an archaic currency regime“. That conclusion on the Hong Kong peg appears presumptuous. And uninformed.
A spin-off makes sense as Zijin (2899 HK) capitalises on the upward cycle in gold prices. However, Zijin is trading at a single-digit NAV discount. Before any holding company discount.

Sandvik’s Bold Manufacturing Play: Can It Weather the Next Global Crisis? – Initiation of Coverage

Sandvik’s first quarter of 2025 showcased varied performance across its business segments and regions, colored by a mix of positive and challenging elements within the broader macroeconomic context.
The company’s Mining segment showed significant momentum, driven by robust demand and major orders in Australia and South America, contributing to a 7% increase in organic order intake.
Conversely, the Cutting Tools and Infrastructure divisions displayed continued strain from economic uncertainties, with notable declines in key markets such as Europe and North America.

Copart Is Winning Big From Insurance Chaos—Here’s How It’s Snatching Market Share!

Copart, Inc.’s Q3 2025 earnings highlight several noteworthy aspects of its performance and market dynamics, offering a balanced view of the company’s current standing and future challenges.
The company’s global unit sales increased by 1%, with a more notable rise of 2% on a per-business-day basis.
This growth, however, masks a flat performance in the U.S. segment and a decrease in U.S. insurance unit volume by nearly 1% year-over-year.

[Quiddity Index] MV Global Uranium & Nuclear Energy Jun25 Rebalance Results: Flow Expectations

The MV Global Uranium & Nuclear Energy index represents the performance of the biggest and the most liquid companies in the Uranium and Nuclear industries.
Cgn Mining (1164 HK) will be an ADD and Endesa SA (ELE SM) will be a DELETE in June 2025.
There are also some big capping flows so we expect a one-way flow of US$227mn for June 2025, which translates to a turnover of 15.7%.

EnerSys Just Unlocked a Multi-Billion Dollar Opportunity With Its Motive Power Breakthrough; What Lies Ahead?