Category

Daily Briefs

Jun 12
0

Daily Brief Macro: US Consumer Pricing Still Ignores Tariffs and more

By | Daily Briefs, Macro

In today’s briefing:

  • US Consumer Pricing Still Ignores Tariffs
  • [IO Fundamentals 2025/23] Deflation Concerns and Declining Portside Inventories
  • Cambodian Tire Sector Propels Domestic Rubber Amid Price Rally
  • CX Daily: Chinese Exporters Pivot to Domestic Consumers in Trade War Hedge

US Consumer Pricing Still Ignores Tariffs

By Phil Rush

  • Another downside surprise in headline US inflation reflected the lack of pass-through from tariff increases, with headline and core rates of only 0.1% m-o-m in May.
  • Commodities, less food, energy and car prices stalled as airfares and apparel fell again. But services (ex-shelter) inflation stayed too high to be consistent with the target.
  • Low headline rates raise dovish political pressure and the risk of a cut, but the tight labour market should encourage the Fed to keep rolling potential cuts later.

[IO Fundamentals 2025/23] Deflation Concerns and Declining Portside Inventories

By Umang Agrawal

  • China’s CPI plunged 0.1% YoY in May-25, while producer prices declined by 3.3% driven by softening domestic demand and US tariff tensions. 
  • China’s iron ore imports declined due to seasonal factors and early clearances, while strong steel exports may pressure prices amid front-loaded global supply.
  • Iron ore portside inventories fell further in early June, but weakening demand and slower pick-up volumes may soon reverse the trend and pressure prices.

Cambodian Tire Sector Propels Domestic Rubber Amid Price Rally

By Vinod Nedumudy

  • Rubber exports fetch US$148 million despite volume decline  
  • Two big tire factories bring $335 million investment  
  • Local tire demand is reshaping rubber supply priorities  

CX Daily: Chinese Exporters Pivot to Domestic Consumers in Trade War Hedge

By Caixin Global

  • TOP STORIES Tariff / In Depth: Chinese exporters pivot to domestic consumers in trade war hedge
  • The recent 90-day truce in the U.S.-China tariff war has prompted a flurry of activity among Chinese exporters, with traders rushing to ship goods overseas before tensions escalate again.
  • But at the same time a major shift is underway among exporters — many are now trying to sell those same goods at home, as they scramble to hedge their bets against future global instability.

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Jun 12
0

Daily Brief Equity Bottom-Up: No Visa For Group Tour Visitors from China to South Korea Likely Starting 3Q 2025 and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • No Visa For Group Tour Visitors from China to South Korea Likely Starting 3Q 2025
  • Isetan Shinjuku Takes 24% of Tokyo Market but Worries for Future
  • TSMC News: Kumamoto Postponed, Maybe Germany Too. Arizona Accelerating. N2 Yield Rates.
  • Tabio: Licensing and Overseas Expansion Should Boost Sock Retailer
  • Turning Bearish: Hang Lung Properties Going Through a Perfect Storm
  • Nippo Ltd. (9913 JP): Research Update
  • Sinfonia (6507) | A Moment to Take Stock
  • VRA: Time For Change (Again); Suspending Rating, PT; Lowering Projections
  • TSMC (2330.TT; TSM.US): Is the Cost of Advanced Wafers a Concern? We Believe It Isn’t.
  • Worry About Fake Fakes Makes RealReal a Bad Bet

No Visa For Group Tour Visitors from China to South Korea Likely Starting 3Q 2025

By Douglas Kim

  • In the next several weeks, the South Korean government is likely to provide details of a no visa policy for group tour visitors from China to South Korea.
  • We provide a list of top 15 Korean companies that could benefit from potential no visa policy for group tour visitors from China to South Korea. 
  • These 15 companies’ share prices are up on average 49.2% YTD, sharply outperforming KOSPI and KOSDAQ that are up 21.2% and 15.9%, respectively YTD.

Isetan Shinjuku Takes 24% of Tokyo Market but Worries for Future

By Michael Causton

  • Department stores had a terrific year in FY2024, especially some of the more iconic stores like Isetan Shinjuku and Hankyu Umeda. 
  • Declining custom from tourists is beginning to be a worry but the emphasis on capturing data on core local customers has, and will, pay big dividends for the best stores.
  • The rest of the sector however, will continue to contract but the polarisation will help highlight the luxury positioning of the best stores.

TSMC News: Kumamoto Postponed, Maybe Germany Too. Arizona Accelerating. N2 Yield Rates.

By Nicolas Baratte

  • Kumamoto 2nd Fab delayed because of bad traffic? Sure, bad traffic, but legacy Fab utilization is 70%, who needs additional capacity now and in 2026? Legacy demand remains weak. 
  • Arizona construction is accelerating, highlighting the dichotomy that I’ve been mentioning : demand for AI / Data Center is booming, demand for Legacy (specially auto & industrial) remains weak. 
  • 2nm yield reached 90%. True, but that’s the yield of SRAM test cell. This is not a production yield. SRAM is a very small cell used to qualify volume ramp. 

Tabio: Licensing and Overseas Expansion Should Boost Sock Retailer

By Michael Causton

  • Tabio is the biggest retailer of hosiery in Japan but has suffered a decade of stagnant growth. 
  • It now has plans to grow e-commerce, men’s sports lines through licenses such as with FC Barcelona.
  • It will also speed up overseas expansion, especially in China.

Turning Bearish: Hang Lung Properties Going Through a Perfect Storm

By Jacob Cheng

  • We are turning bearish on Hang Lung Properties.   Given China’s economic slowdown, we think luxury spending in China will take longer than expected
  • In addition, the property slowdown and housing prices decline will lead to a negative wealth effect, which will further impact luxury consumption
  • If RMB is to strengthen, more Chinese will travel to spend overseas.  HLP P/B valuation is almost historical low, but can stay cheap as a “value trap”

Nippo Ltd. (9913 JP): Research Update

By Nippon Investment Bespoke Research UK

  • Nippo produced record earnings in FY24, with OP of ¥1,970mil (+2.7% YoY) on sales of ¥44,890mil (+7.1% YoY).
  • Thanks primarily to solid growth in order for print circuit boards [PCBs] used in generative AI servers and wafer polishing jigs manufactured in Nippo’s Okinawa factory, sales landed above the firm’s guidance of ¥42,000mil.
  • FY25 is the final year of Nippo’s medium-term plan [MTP] which calls for an OP target of ¥2,000mil.

Sinfonia (6507) | A Moment to Take Stock

By Mark Chadwick

  • Strong fundamentals priced in: Sinfonia’s sharp share price rally reflects robust FY3/25 results, but modest FY3/26 guidance limits near-term upside potential.
  • Conservative outlook despite tailwinds: Management’s cautious projections for semiconductor and defense segments appear understated given ongoing structural growth in both industries.
  • Valuation fair at current levels: Updated DCF suggests shares are reasonably valued; premium to peers justified by dual exposure to secular growth in aerospace and semiconductors.

VRA: Time For Change (Again); Suspending Rating, PT; Lowering Projections

By Small Cap Consumer Research

  • We are suspending our rating and price target for Vera Bradley and lowering our projections after a below expectations 1Q, and the announced departure of CEO Jacqueline Ardrey and Chief Financial Officer Michael Schwindle.
  • Further, the company has already hired Martin Layding (x-Divisional CFO for the Coach brand) as CFO, with Board member Ian Bickley (Coach management) entering into a new role as Vera Bradley Executive Chairman until the CEO transition is completed.
  • Given the shifts, the company suspended any formal financial guidance.

TSMC (2330.TT; TSM.US): Is the Cost of Advanced Wafers a Concern? We Believe It Isn’t.

By Patrick Liao

  • There is speculation that the cost of Taiwan Semiconductor (TSMC) – ADR (TSM US) 1.4nm wafers is more than 30% higher than that of 2nm wafers.  
  • In semiconductor node migration, newly introduced solutions are generally more advanced and therefore more valuable—which naturally means higher costs.
  • Apple (AAPL US)’s iPhone consistently adopts TSMC’s most advanced technology, ensuring its products maintain industry-leading operational efficiency.

Worry About Fake Fakes Makes RealReal a Bad Bet

By J Capital Research

  • Product authentication and legitimacy are paramount for The RealReal (NASDAQ: REAL), which sells used luxury items.
  • But our research indicates that REAL’s authentication lets through many counterfeits, and that has enraged both buyers and sellers, undermining the sense of trust.
  • REAL has applied AI to the authentication problem to speed things up, but we see no evidence of effectiveness.

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Jun 12
0

Daily Brief Singapore: SGX Rubber Future TSR20 and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Cambodian Tire Sector Propels Domestic Rubber Amid Price Rally

Cambodian Tire Sector Propels Domestic Rubber Amid Price Rally

By Vinod Nedumudy

  • Rubber exports fetch US$148 million despite volume decline  
  • Two big tire factories bring $335 million investment  
  • Local tire demand is reshaping rubber supply priorities  

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Jun 12
0

Most Read: Foshan Haitian Flavouring & Food, TRYT , Horizon Robotics, Toyota Industries, Virgin Australia Holdings, Kioxia Holdings , SK Inc, KE Holdings , MINISO Group Holding and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Foshan Haitian Flavouring & Food (3288 HK): Offering Details & Index Inclusion
  • [Japan M&A] Carlyle Deal for TRYT (9164) – Great Exit for Speculators as HR Co Targets Are Desirable
  • Horizon Robotics Placement – Momentum Is Strong but Raising Seems Opportunistic
  • Toyota Industries (6201 JP): Thoughts on Intrinsic Value
  • Virgin Australia (VGN AU): Touch & Go for Index Inclusion
  • Kioxia IPO Lockup Expiry – US$6.7bn Release, with Shareholders Eager to Sell
  • Preferred Shares of Five Major Korean Holdcos – Likely to Close the Gap Further With Common Shares
  • CSI Hong Kong Connect Internet Index Rebalance: 10 Changes & Big Impact
  • MINISO (9896 HK)’s (Possible) TOP TOY Spin-Off Is Priced In
  • Foshan Haitian Flavouring A/H Listing – Strong Cornerstone, Weak Momentum

Foshan Haitian Flavouring & Food (3288 HK): Offering Details & Index Inclusion

By Brian Freitas

  • Foshan Haitian Flavouring & Food (603288 CH)‘s global offering opens today and the raise could reach up to US$1.5bn 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% to the A-shares is attractive given the recent trend for Midea (300 HK) and CATL (3750 HK). 
  • The H-shares could be added to a global index and the FXI ETF in December. Inclusion in the HSCI should be in September and Southbound Stock Connect in July. 

[Japan M&A] Carlyle Deal for TRYT (9164) – Great Exit for Speculators as HR Co Targets Are Desirable

By Travis Lundy

  • In early February, articles suggesting the PE owner of TRYT (9164 JP) wanted to cash out. Performance post-IPO had been bad. Catching up to the IPO price would be tough.
  • But a second round of bidding came about, so the stock went limit up. Then it settled in the ¥480 range for three weeks. Then started to climb. 
  • Now the company and its PE firm owner have announced a sale to a new PE Firm at ¥880/share. This is below IPO Price but it will get done.

Horizon Robotics Placement – Momentum Is Strong but Raising Seems Opportunistic

By Sumeet Singh

  • Horizon Robotics (9660 HK) raised around US$800m in its Hong Kong IPO in October 2024. It’s back again to raise another US$600m via a placement.
  • Horizon Robotics (HR) is a provider of advanced driver assistance systems (ADAS) and autonomous driving (AD) solutions for passenger vehicles, empowered by its proprietary software and hardware technologies.
  • In this note we talk about the deal dynamics and run the deal through our ECM framework.

Toyota Industries (6201 JP): Thoughts on Intrinsic Value

By Arun George

  • Several investors have sharply criticised Toyota Industries (6201 JP)’s preconditional tender offer from Toyota Fudosan. Oasis is pushing for a higher offer. 
  • The offer has several issues that are detrimental to minorities’ interests. The key grievance is that it is below TICO’s intrinsic value.
  • Due to TICO’s varied business units, SoTP valuation is the most appropriate methodology. My analysis suggests a base case intrinsic value of around JPY19,000.

Virgin Australia (VGN AU): Touch & Go for Index Inclusion

By Brian Freitas

  • Virgin Australia Holdings (VGN AU) is looking to raise A$685m in a secondary offering, valuing the company at A$2.27bn. The stock is expected to start trading on 24 June.
  • Bain Capital and management are escrowed on their shares till early 2026. There is no escrow for Qatar Airways, but they have indicated that their shareholding is strategic.
  • Virgin Australia Holdings (VGN AU) could be added to the S&P/ASX 300 Index in September and there could be global index inclusions in November and December.

Kioxia IPO Lockup Expiry – US$6.7bn Release, with Shareholders Eager to Sell

By Sumeet Singh

  • Kioxia Holdings (285A JP) raised around US$800m (including over-allocation) in its Japan IPO, after pricing its IPO in the middle of its range. Its IPO linked lockup will expire soon.
  • Kioxia is a manufacturer and a global leader in flash memory and solid state drives for smartphones, PCs, enterprise servers and data centers.
  • In this note, we will talk about the lock-up dynamics and updates since our last note.

Preferred Shares of Five Major Korean Holdcos – Likely to Close the Gap Further With Common Shares

By Douglas Kim

  • In this insight, we discuss the preferred shares of five major holding companies and how the share price gap relative to their common counterparts could decrease. 
  • There is a relatively easy way to improve shareholder value of these holding companies which is to cancel the entire preferred shares that trade at discount to their common counterparts.
  • The common shares of these five companies have experienced an average share price appreciation of 33.2% YTD versus 28.7% appreciation for their preferred shares counterparts.

CSI Hong Kong Connect Internet Index Rebalance: 10 Changes & Big Impact

By Brian Freitas

  • 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.

MINISO (9896 HK)’s (Possible) TOP TOY Spin-Off Is Priced In

By David Blennerhassett

  • Three months ago, local media reported that Chinese lifestyle retailer MINISO Group Holding (9896 HK) was considering spinning off its collectible toy unit TOP TOY on the Hong Kong exchange. 
  • Reportedly, MINISO could raise ~US$300mn from an IPO. MINISO has now confirmed that a spin-off is being contemplated; although a proposal is only at a preliminary stage. 
  • TOP TOY has been a growth engine. But its contribution to the group is still ~6%. Applying a holding company discount, post spin-off, MINISO’s upside appears limited.

Foshan Haitian Flavouring A/H Listing – Strong Cornerstone, Weak Momentum

By Sumeet Singh

  • Foshan Haitian Flavouring & Food (603288 CH) (FHCC), China’s leading condiments company, aims to raise around US$1.2bn in its H-share listing.
  • FHCC is China’s leading condiments company within its main product categories of soy sauce, oyster sauce, flavored sauce, specialty condiment products and other products.
  • We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.

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Jun 12
0

Daily Brief United States: Voyager Technologies, RealReal Inc, Vera Bradley, Ategrity Specialty Holdings, Bone Biologics , Uni-Fuels Holdings, Telomir Pharmaceuticals, Vince Holding, CoreCivic and more

By | Daily Briefs, United States

In today’s briefing:

  • Voyager Technologies Inc. (VOYG): Space & Defense IPO Rockets Higher; More than a Double at Open
  • Worry About Fake Fakes Makes RealReal a Bad Bet
  • VRA: Time For Change (Again); Suspending Rating, PT; Lowering Projections
  • Ategrity Specialty Holdings LLC (ASIC): Insurance Sector Stays Hot, Pops 6 Points at Open
  • BBLG: Now is the Time to Look at BBLG
  • Uni-Fuels Holdings: Initiation of Fast Growing Marine Fuels Supplier Entering a New Growth Phase
  • TELO: Data Shows Potential Treatment for Age-Related Diseases
  • VNCE: 1Q Preview: Living in a 30% China Tariff World; Reiterate Buy, $4 PT
  • CXW: Pending Acquisition of Farmville Facility – Raising Estimates, Valuation

Voyager Technologies Inc. (VOYG): Space & Defense IPO Rockets Higher; More than a Double at Open

By IPO Boutique

  • Voyager Technologies priced 12.3mm shares (upsized from 11.0mm) at $31.00 ($2 Above the Range) and opened at $69.75 for a gain of 125.0% at first trade.
  • The offering finished north of 20-times oversubscribed (on the new size) with the top 10 accounts taking 60% of the deal and the top 20 getting 80% of the transaction.
  • The volume of VOYG was nearly 2x the float making this stock one that could potentially find buyers in days to come.

Worry About Fake Fakes Makes RealReal a Bad Bet

By J Capital Research

  • Product authentication and legitimacy are paramount for The RealReal (NASDAQ: REAL), which sells used luxury items.
  • But our research indicates that REAL’s authentication lets through many counterfeits, and that has enraged both buyers and sellers, undermining the sense of trust.
  • REAL has applied AI to the authentication problem to speed things up, but we see no evidence of effectiveness.

VRA: Time For Change (Again); Suspending Rating, PT; Lowering Projections

By Small Cap Consumer Research

  • We are suspending our rating and price target for Vera Bradley and lowering our projections after a below expectations 1Q, and the announced departure of CEO Jacqueline Ardrey and Chief Financial Officer Michael Schwindle.
  • Further, the company has already hired Martin Layding (x-Divisional CFO for the Coach brand) as CFO, with Board member Ian Bickley (Coach management) entering into a new role as Vera Bradley Executive Chairman until the CEO transition is completed.
  • Given the shifts, the company suspended any formal financial guidance.

Ategrity Specialty Holdings LLC (ASIC): Insurance Sector Stays Hot, Pops 6 Points at Open

By IPO Boutique

  • Ategrity Specialty Holdings LLC (ASIC) priced a full-size deal of 6.67mm shares at $17.00 ($1 above the range) and opened at $23.65 for a gain of 39.1% at first trade.
  • The underwriters felt good about this IPO enough that they elected to accelerate the timing of this deal by a single day.
  • This insurance company was a pure-play E&S with higher regards given to this niche area by sector-dedicated investors.

BBLG: Now is the Time to Look at BBLG

By Zacks Small Cap Research

  • Bone Biologics is pursuing a better and more effective way of dealing with back pain requiring surgery by developing bone regeneration in spinal fusion using the recombinant human protein known as NELL-1/DBX, or NB1.
  • The company continues with human trials, and we are looking forward to the initial results and suggest investors consider investing ahead of the result release.

Uni-Fuels Holdings: Initiation of Fast Growing Marine Fuels Supplier Entering a New Growth Phase

By Zacks Small Cap Research

  • Uni-Fuels (NASDAQ: UFG) is a fast-growing global provider of marine fuels solutions, helping shipping companies optimize fuel procurement across various international markets and time zones.
  • The company currently operates in Singapore, Dubai and Seoul and plans to expand globally including new offices in Asia, Europe and the Americas.
  • The company went public in January 2025 raising $9.7 million in gross proceeds including February overallotment.

TELO: Data Shows Potential Treatment for Age-Related Diseases

By Zacks Small Cap Research

  • Telomir Pharmaceuticals is a preclinical stage company focused on reversing biological aging and degenerative diseases.
  • The company announced preclinical test results that showed Telomir-1 reversed multiple symptoms in an animal model of Wilson’s disease.
  • These results provide further proof of the potential of Telomir-1 to reduce aging-related diseases.

VNCE: 1Q Preview: Living in a 30% China Tariff World; Reiterate Buy, $4 PT

By Small Cap Consumer Research

  • We are reiterating our Buy rating, projections and $4 price target for Vince Holding with the company announcing 1QFY25 (April) results before the open on Tuesday.
  • We believe Vince’s business model remains fully intact, but material gains have been deferred by the current China export tariff regime; as such, we expect revenue and demand from both the wholesale and owned stores to be solid, while we also expect, as the company slowly shifts the supply chain to lower tariff countries, for near-term margins to remain under material pressure.
  • The key will be what the potential/ business model is going forward.

CXW: Pending Acquisition of Farmville Facility – Raising Estimates, Valuation

By Zacks Small Cap Research

  • CXW had liquidity of about $331m at 1Q25-end & plans to fund the $67.0m purchase using cash on hand and its revolving credit facility.
  • Farmville is expected to produce annual incremental revenue of about $40.0m for CXW & we have revised our model.
  • We believe the transaction also underscores CXW’s strong relationship with ICE, its largest government partner, and need for capacity.

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Jun 12
0

Daily Brief India: Bharat Coking Coal Limited (BCCL) and more

By | Daily Briefs, India

In today’s briefing:

  • Bharat Coking Coal Ltd Pre-IPO Tearsheet

Bharat Coking Coal Ltd Pre-IPO Tearsheet

By Rosita Fernandes

  • Bharat Coking Coal Limited (BCCL) (7535956Z IN) is looking to raise about US$100m in its upcoming India IPO. The bookrunners for the deal are IDBI, ICICI.
  • BCCL is a subsidiary of Coal India Limited engaged primarily in the mining of coking coal. It produces various grades of coking coal, non-coking coal, and washed coal.
  • According to the CRISIL Report, BCCL was the largest producer of coking coal in India in FY25, contributing 58.50% to the country’s total domestic coking coal production.

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Jun 12
0

Daily Brief Japan: Toyota Industries, Isetan Mitsukoshi Holdings Ltd, Tabio Corp, Sinfonia Technology, Nippo Ltd, TSE Tokyo Price Index TOPIX, SanBio Co Ltd, Tekken Corp and more

By | Daily Briefs, Japan

In today’s briefing:

  • Toyota Industries (6201 JP): Thoughts on Intrinsic Value
  • Isetan Shinjuku Takes 24% of Tokyo Market but Worries for Future
  • Tabio: Licensing and Overseas Expansion Should Boost Sock Retailer
  • Sinfonia (6507) | A Moment to Take Stock
  • Nippo Ltd. (9913 JP): Research Update
  • The Reality of the Concentration of AGM Dates Has Not Changed
  • SanBio Co Ltd (4592 JP): Akuugo Shipments Expected To Commence In 2QFY26, New Credit Line In Place
  • Tekken Corporation (1815 JP) – Responding to Social Infrastructure Demands…

Toyota Industries (6201 JP): Thoughts on Intrinsic Value

By Arun George

  • Several investors have sharply criticised Toyota Industries (6201 JP)’s preconditional tender offer from Toyota Fudosan. Oasis is pushing for a higher offer. 
  • The offer has several issues that are detrimental to minorities’ interests. The key grievance is that it is below TICO’s intrinsic value.
  • Due to TICO’s varied business units, SoTP valuation is the most appropriate methodology. My analysis suggests a base case intrinsic value of around JPY19,000.

Isetan Shinjuku Takes 24% of Tokyo Market but Worries for Future

By Michael Causton

  • Department stores had a terrific year in FY2024, especially some of the more iconic stores like Isetan Shinjuku and Hankyu Umeda. 
  • Declining custom from tourists is beginning to be a worry but the emphasis on capturing data on core local customers has, and will, pay big dividends for the best stores.
  • The rest of the sector however, will continue to contract but the polarisation will help highlight the luxury positioning of the best stores.

Tabio: Licensing and Overseas Expansion Should Boost Sock Retailer

By Michael Causton

  • Tabio is the biggest retailer of hosiery in Japan but has suffered a decade of stagnant growth. 
  • It now has plans to grow e-commerce, men’s sports lines through licenses such as with FC Barcelona.
  • It will also speed up overseas expansion, especially in China.

Sinfonia (6507) | A Moment to Take Stock

By Mark Chadwick

  • Strong fundamentals priced in: Sinfonia’s sharp share price rally reflects robust FY3/25 results, but modest FY3/26 guidance limits near-term upside potential.
  • Conservative outlook despite tailwinds: Management’s cautious projections for semiconductor and defense segments appear understated given ongoing structural growth in both industries.
  • Valuation fair at current levels: Updated DCF suggests shares are reasonably valued; premium to peers justified by dual exposure to secular growth in aerospace and semiconductors.

Nippo Ltd. (9913 JP): Research Update

By Nippon Investment Bespoke Research UK

  • Nippo produced record earnings in FY24, with OP of ¥1,970mil (+2.7% YoY) on sales of ¥44,890mil (+7.1% YoY).
  • Thanks primarily to solid growth in order for print circuit boards [PCBs] used in generative AI servers and wafer polishing jigs manufactured in Nippo’s Okinawa factory, sales landed above the firm’s guidance of ¥42,000mil.
  • FY25 is the final year of Nippo’s medium-term plan [MTP] which calls for an OP target of ¥2,000mil.

The Reality of the Concentration of AGM Dates Has Not Changed

By Aki Matsumoto

  • In 2024, 69.7% of AGMs concentrated on the last three days of June, but in 2025, 79.9% of companies will hold AGMs on the last four days of June.
  • Most companies have established that they provide electronic convocation notices up to three weeks in advance. Meanwhile, only 1/3 of Prime companies provide English translations of all convocation notices.
  • Over 80% of companies hold AGMs in formats that require attendance at the venue to have a say. Only 1.6% hold AGMs where a shareholder can attend and speak online.

SanBio Co Ltd (4592 JP): Akuugo Shipments Expected To Commence In 2QFY26, New Credit Line In Place

By Tina Banerjee

  • SanBio Co Ltd (4592 JP) successfully completed three commercial production runs to accumulate inventories in preparation for launch. The earliest possible timing for shipment is expected to be 2QFY26.
  • During FY25, SanBio did not generate any revenue. The successful launch and shipments are likely to have only a minimal impact on the financial performance of the company in FY26.
  • SanBio has a cash runway through FY26. Further, in, company entered into a new committed credit line agreement (¥1B) with Mizuho Bank.

Tekken Corporation (1815 JP) – Responding to Social Infrastructure Demands…

By Sessa Investment Research

  • TEKKEN CORPORATION (hereafter, “the Company”) is a construction firm centered on railroad construction, with operations spanning civil engineering, architectural construction, and real estate.
  • As an equity-method affiliate of JR East, which holds a 19.6% stake, the Company secures stable, long-term orders for key projects such as the improvement work of major stations and the new Haneda Airport access line.
  • Railroad construction accounts for approximately 40% of consolidated net sales. 

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Jun 12
0

Daily Brief China: Horizon Robotics, KE Holdings , MINISO Group Holding , Foshan Haitian Flavouring & Food, Pop Mart International Group L, Foshan Haitian Flavouring & Food Company, JD.com , Iron Ore, Saint Bella and more

By | China, Daily Briefs

In today’s briefing:

  • Horizon Robotics Placement – Momentum Is Strong but Raising Seems Opportunistic
  • CSI Hong Kong Connect Internet Index Rebalance: 10 Changes & Big Impact
  • MINISO (9896 HK)’s (Possible) TOP TOY Spin-Off Is Priced In
  • Foshan Haitian Flavouring A/H Listing – Strong Cornerstone, Weak Momentum
  • Quiddity Leaderboard HSCEI Sep25: One Change Likely; US$245mn One-Way Flow
  • Foshan Haitian Flavouring (3288 HK) IPO: The Valuation Perspective
  • Foshan Haitian Flavouring H Share Listing (3288 HK): Valuation Insights
  • JD.com (9618 HK): Top Trades and Strategic Insights from HKEX Options Trading
  • [IO Fundamentals 2025/23] Deflation Concerns and Declining Portside Inventories
  • Saint Bella IPO: Revenue Growth Re-Accelerated, 34 Postpartum Centers Were Opened In 2024

Horizon Robotics Placement – Momentum Is Strong but Raising Seems Opportunistic

By Sumeet Singh

  • Horizon Robotics (9660 HK) raised around US$800m in its Hong Kong IPO in October 2024. It’s back again to raise another US$600m via a placement.
  • Horizon Robotics (HR) is a provider of advanced driver assistance systems (ADAS) and autonomous driving (AD) solutions for passenger vehicles, empowered by its proprietary software and hardware technologies.
  • In this note we talk about the deal dynamics and run the deal through our ECM framework.

CSI Hong Kong Connect Internet Index Rebalance: 10 Changes & Big Impact

By Brian Freitas

  • 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.

MINISO (9896 HK)’s (Possible) TOP TOY Spin-Off Is Priced In

By David Blennerhassett

  • Three months ago, local media reported that Chinese lifestyle retailer MINISO Group Holding (9896 HK) was considering spinning off its collectible toy unit TOP TOY on the Hong Kong exchange. 
  • Reportedly, MINISO could raise ~US$300mn from an IPO. MINISO has now confirmed that a spin-off is being contemplated; although a proposal is only at a preliminary stage. 
  • TOP TOY has been a growth engine. But its contribution to the group is still ~6%. Applying a holding company discount, post spin-off, MINISO’s upside appears limited.

Foshan Haitian Flavouring A/H Listing – Strong Cornerstone, Weak Momentum

By Sumeet Singh

  • Foshan Haitian Flavouring & Food (603288 CH) (FHCC), China’s leading condiments company, aims to raise around US$1.2bn in its H-share listing.
  • FHCC is China’s leading condiments company within its main product categories of soy sauce, oyster sauce, flavored sauce, specialty condiment products and other products.
  • We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.

Quiddity Leaderboard HSCEI Sep25: One Change Likely; US$245mn One-Way Flow

By Janaghan Jeyakumar, CFA

  • The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
  • In this insight, we take a look at the potential index changes and capping flows for HSCEI index rebal event in September 2025.
  • Based on the latest data, we see one ADD and one DEL.

Foshan Haitian Flavouring (3288 HK) IPO: The Valuation Perspective

By Osbert Tang, CFA

  • Fundamentals first, Foshan Haitian Flavouring & Food Company (3288 HK)‘s IPO is interesting given a positive growth outlook – 1Q25 growth accelerated to 14.8% with margin expansion. 
  • We value the H-share at HK$39.35, 8.4% higher than the high-end of the IPO price based on 28.2x FY25F PER to reflect its significantly stronger 3-year earnings growth.  
  • It equals 5.9x pre-money FY25F P/B, justified by ROE of 21.8-22%, sharply ahead of peers. Net cash equals 12.4% of its A-share market cap. 

Foshan Haitian Flavouring H Share Listing (3288 HK): Valuation Insights

By Arun George

JD.com (9618 HK): Top Trades and Strategic Insights from HKEX Options Trading

By Gaudenz Schneider

  • Discover sophisticated, live, multi-leg options strategies on JD.com (9618 HK), executed over the period from 4 June to 10 June on the HKEX
  • Highlights: A range of noteworthy strategies, including a deep in-the-money, three-months Diagonal Call Spread and an ultra-low-cost, one-week Calendar Put Spread, highlighting diverse approaches to capitalize on market movements.
  • Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,

[IO Fundamentals 2025/23] Deflation Concerns and Declining Portside Inventories

By Umang Agrawal

  • China’s CPI plunged 0.1% YoY in May-25, while producer prices declined by 3.3% driven by softening domestic demand and US tariff tensions. 
  • China’s iron ore imports declined due to seasonal factors and early clearances, while strong steel exports may pressure prices amid front-loaded global supply.
  • Iron ore portside inventories fell further in early June, but weakening demand and slower pick-up volumes may soon reverse the trend and pressure prices.

Saint Bella IPO: Revenue Growth Re-Accelerated, 34 Postpartum Centers Were Opened In 2024

By Andrei Zakharov

  • Saint Bella, a premium postpartum care and recovery provider, moves toward Hong Kong IPO following strong +43% y/y revenue growth in 2024.
  • The company is uniquely positioned in premium segment under Saint Bella, Bella Isla and Baby Bella brands.
  • I believe Saint Bella has the potential to become one of the key postpartum care and recovery providers targeting HNW, high income and young middle class families in China

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Jun 11
0

Daily Brief Quantitative Analysis: JPX Margin Trading Weekly (Jun 6th): Advantest and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • JPX Margin Trading Weekly (Jun 6th): Advantest, Sbi Sumishin Net Bank, Toyota Industries
  • KRX Short Interest Weekly (Jun 6th): Lg Energy Solution, Celltrion, Ecoprobm, Hanmi Semicon

JPX Margin Trading Weekly (Jun 6th): Advantest, Sbi Sumishin Net Bank, Toyota Industries

By Ke Yan, CFA, FRM

  • We analyzed the changes in margin trading positions of JPX stocks as of Jun 6th. The aggregated net margin trading position is USD17,477m.
  • We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.
  • We highlight net margin buy/sell changes in Advantest, Sbi Sumishin Net Bank, Toyota Industries, Mitsubishi Ufj Financial, Softbank, Toyota Motor, Skylark, Keyence, Nippon Yusen Kabushiki Kaisha, Mitsubishi Heavy Industries.

KRX Short Interest Weekly (Jun 6th): Lg Energy Solution, Celltrion, Ecoprobm, Hanmi Semicon

By Ke Yan, CFA, FRM

  • We analyzed the changes in short interest of KRX stocks as of Jun 6th. The aggregated short interest was USD0.8bn.
  • We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases & decreases in short value, short as multiple of ADT.
  • We highlight short interest changes in Lg Energy Solution, Celltrion, Ecoprobm Co.Ltd, Hanmi Semicon, Hlb.

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Jun 11
0

Daily Brief Energy/Materials: Almonty Industries, Forum Energy Technologies , ADF Group , Copper Fox Metals and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Research Comment – Almonty Industries Inc. – 10.06.2025
  • Forum Energy Technologies, Inc: Beat-The-Market Strategy Supports Through Cycle Value Creation
  • DRX: In Line Q1 Financials; Tariff Impact Less than Expected
  • CUU: Copper Optionality in Tier-1 Jurisdictions

Research Comment – Almonty Industries Inc. – 10.06.2025

By GBC AG

  • Almonty Industries has reported first quarter 2025 financial results in line with expectations and reaffirmed its position as one of the most strategically important critical mineral suppliers in the Western Hemisphere.
  • The company continues to deliver on its operational roadmap, capital deployment, and geopolitical positioning at a time when global interest in reliable non-Chinese tungsten supply is intensifying.
  • Following a significant rally in tungsten prices since February and the continued de-risking of its Sangdong Mine in South Korea, we have updated our forecasts and valuation model.

Forum Energy Technologies, Inc: Beat-The-Market Strategy Supports Through Cycle Value Creation

By Water Tower Research

  • FET’s Beat-the-Market strategy is geared to position the company to gain share with customers during cyclical troughs that can support accelerated growth as the cycle turns higher.
  • The strategy is underpinned by the company’s focus on developing specialized technological solutions that allow its customers to develop their assets cost-efficiently and safely.
  • Increased drilling and completion intensity as operators push the limits of lateral lengths and stimulation intensity drives demand for the consumable products that account for ~80% of FET’s revenue.

DRX: In Line Q1 Financials; Tariff Impact Less than Expected

By Atrium Research

  • What you need to know: • ADF reported Q1 financials that were in line with our expectations, reflecting a large decline due to the disruption caused by the tariffs.
  • • Revenue came in at $55.5M (-48% YoY) vs. our estimate of $58.5M and EBITDA came in at $10.4M (19% margin) vs. our estimate of $8.9M.
  • • Management highlighted that its products are exempt from tariffs as its steel is purchased from U.S. mills, and as such, financials will improve in H2.

CUU: Copper Optionality in Tier-1 Jurisdictions

By Atrium Research

  • What you need to know: • Copper Fox owns 25% of Schaft Creek, a PEA-stage (after-tax NPV8% $842M and 13% IRR) copper-gold-molybdenum asset, funded by Teck (75% owner) to production.
  • • CUU also owns 100% of the PEA-stage Van Dyke ISCR Project which boasts a highly profitable project (after-tax NPV7.5% $645M & 43% IRR).
  • • The Company holds a portfolio of three other copper exploration assets, all showing early signs of being legitimate projects.

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