Thematic (Sector/Industry)

• Markets posted mixed results Monday as U.S.-China trade talks commenced in London
• Semiconductor stocks rallied, led by Qualcomm surging over 4% on its $2.4 billion Alphawave acquisition
• Microsoft unveiled its first Xbox-branded handheld gaming devices, the ROG Xbox Ally

• US banks HFD in Fed H8 weekly release suggests strong income for US banks
• LLR stagnating weekly basis for a long time, suggesting little incremental credit costs
• LDR also expanding, with low growth of high costs deposits, 2Q25 profit can be strong

• On the latest WTR Small-Cap Spotlight, we were joined by Howard Klein, Founder of RK Equity and a leading lithium industry expert, to discuss the current state of the critical metal markets, the impact of low metal prices on public company valuations, and challenges both public and private resource developers are experiencing in raising capital required to move mining projects into commercial production.
• Lower metal prices constrain the ability to use equity to raise capital.
• The persistently low prices of lithium, nickel, cobalt, and graphite, among others, in the wake of the post- destocking price bubble have resulted in lower stock prices of metal miners, processors, and developers.

• During rate cut cycle, NBFCs with a higher proportion of floating-rate liabilities & a relatively lower proportion of floating-rate assets are poised to experience an expansion in their profitability.
• This insight analyzes the asset-liability profiles of select Vehicle Financiers, Prime HFCs, and Affordable HFCs to identify their sensitivity to interest rate movements
• Overall, NBFCs expect the benefit of the rate cut to have a lagged effect from H2FY26, leading  expansion in NIM and overall profitability

• This is your Monday morning dose of inspiration. Each week, I’ll share five intriguing investment ideas that recently caught my attention.

• These ideas are meant to spark your research and help you kickstart the week ahead with fresh insights.

• Because these ideas are the result of my first-level idea generation process, they require more in depth research.

• Adani Energy Solutions (ADANIT IN) plans INR 6,000 crore investment in centralised cooling, launching India’s largest facility at Mundra and expanding aggressively across sectors with CaaS model. 
• Apple (AAPL US) appoints Tata to handle iPhone and MacBook repairs in India, reflecting growing confidence and Tata’s expanding role in Apple’s supply chain.
• Maruti Suzuki India (MSIL IN) plans Rs 925 crore investment to expand solar capacity to 319 MWp by 2031, aligning with India’s renewable energy goals and sustainable growth.

• Total public EV charging stations (incl. temporary unavailable locations) were 77,646 as of May 31, 2025. Compared to the end of FY24, it is an increase of 3.5%.
• Total EV charging ports (including the temporary unavailable ports) were 221,045, up nearly 6.9% compared to the end of 2024 and up 0.4% over April 2025
• California has the highest number of active DC Fast ports as of May 2025 at 14,499 (~26% of the total), followed by Texas at 3,757.

• US stocks rallied Friday after stronger-than-expected nonfarm payrolls data eased slowdown fears
• Fifty Japanese companies received activist proposals at June shareholder meetings, the highest number on record,
• Takeda Pharmaceutical faces opposition from Institutional Shareholder Services (ISS) against reappointing CEO

• NFP beat sends yields higher, sending US homebuilders down, positive JP banks.
• Big week for Renesas should also see more upside for Rohm and Fuji Elec with Auto/industrial inflection.
• Capcom announced its latest Resident Evil installment at the SGF, but further upside looks limited.

• US stocks rallied Friday after stronger-than-expected nonfarm payrolls data eased slowdown fears
• Fifty Japanese companies received activist proposals at June shareholder meetings, the highest number on record,
• Takeda Pharmaceutical faces opposition from Institutional Shareholder Services (ISS) against reappointing CEO

• NFP beat sends yields higher, sending US homebuilders down, positive JP banks.
• Big week for Renesas should also see more upside for Rohm and Fuji Elec with Auto/industrial inflection.
• Capcom announced its latest Resident Evil installment at the SGF, but further upside looks limited.

• Japanese equities dipped as geopolitical tensions weighed on autos, though semiconductor stocks surged after Nvidia regained its crown as top global firm.
• Japan’s Q1 capex jumped 6.4% amid pre-tariff investment, but weak household spending and falling real wages signaled persistent domestic demand fragility.
• Toyota Industries fell 10% after unveiling a privatization plan priced below market expectations, raising investor governance concerns despite likely deal approval.

• Hansoh Pharmaceutical stuck outlicense agreement with Regeneron Pharmaceuticals for GLP-1 drug candidate for an upfront payment of $80M. Daiichi Sankyo unveiled positive phase 3 trial result in first-line breast cancer.
• Takeda received European approval for Adcetris as a chemotherapy regimen in Hodgkin lymphoma. Zydus Lifesciences is acquiring 5.9% stake in Agenus and commercial right for its lead candidate for India.
• Mayne Pharma has filed a complaint in the U.S. Court against TherapeuticsMD. Cosette Pharmaceuticals indicated an intention to terminate the acquisition over “material adverse clause claims.”

• We are turning bullish on the sector.  We think there are several structural drivers that will improve the sector as a whole, both on demand and supply side
• Continued low onshore rates will boost the property market as well as reduce funding cost for developers.  The decline in new start will also help support home prices
• Valuation is still almost historical low, we think the downside is relatively limited

• Real estate lending growth in Hong Kong remains weak and now at lowest growth rate in the HKMA series since early FY05
• Deposits are overwhelming HK’s banks with LDR now moving to 55% in April FY25, nearly the lowest on record from HKMA series
• Capital flight risk on the HK currency is also more severe than in the past, at any time, with FX reserves at 1.6x , well below past levels

• PVC‐pipe makers endured FY 25’s perfect storm, resin prices crashed, trade channels destocked, volumes wobbled, yet April-May demand snapped back and resin prices appear to have bottomed.
• Anti-Dumping duties plus the coming BIS quality curb on Chinese resin should lock in price discipline; government infra-spend, real-estate and irrigation needs set up 10-12 % volume CAGR for FY27.
• With inventory now thin, even a modest restocking cycle could turbo-charge revenues while stabilising input costs let organised players claw back EBITDA margins; diversified leaders look best placed.

• The banking sector will likely see earnings growth bottom out in FY26, with the second half potentially performing better than the first half as deposit rate reductions eventually flow through.
• This divergence between declining lending rates and sticky deposit costs is the core driver of NIM compression.
• This monetary easing is expected to exert downward pressure on banks’ lending yields, impacting NIMs, particularly in the first half of fiscal year 2026 (1HFY26). 

• Generative AI (GenAI) and Agentic AI are ushering in unprecedented productivity gains, projecting a 10-50% efficiency boost in Software Development Life Cycle especially for Application Development and Maintenance (ADM).
• A projected ~40% efficiency gain from enterprise-wide GenAI Copilot implementation places approximately 10-15% of current IT services revenues at risk. 
• Though success hinges on the ability to transition GenAI solutions from pilot projects to scaled production deployments, emphasising IP-led innovation and new value creation over mere cost optimisation. 

• XPEV US : The new Xiaopeng car will collaborate on the development of Huawei’s HUD solution (+)
• NIO US: Onvo to Provide Ride-Hailing Vehicles for Didi (-)
• New Energy Vehicle: 2025 May 26 – June 1 NEV Delivery Rankings(/)

• 700 HK: Tencent’s <VALORANT Mobile> Launches iOS App Store Page, Showing Official Release on November 25 (-)
• 1024 HK: Kuaishou’s Kling AI Reaches Strategic Cooperation with Design AI Agent LOVART (+)
• JD US/TCOM US: JD.com may launch OTA (Online Travel Agency) services in the near future (-//)

• Criterium Energy (CEQ CN)C; Target price of C$0.35 per share: On track for first gas in 1Q26 – 1Q25 production of 988 boe/d had been previously reported.
• Criterium held ~C$1.6 mm in cash at the end of 1Q25.
• The company has reduced its accounts payable by ~C$3.5 mm while inventory + amounts receivable were flat vs. YE24.

• Stocks fell as Tesla plunged, Trump-Xi tensions resurfaced, and weak labor data fueled economic concerns ahead of Friday’s key nonfarm payrolls report.
• Suzuki suspends Swift production due to China’s rare earth export limits, disrupting global supply chains. This could get ugly.
• Palliser Capital opposes Keisei’s board, pushing for governance reform and a reduced Oriental Land stake to boost capital efficiency. Unlikely to sway other shareholders

• China’s wiring AI directly into the real economy: across consumer platforms, supply chains, and public services. That real-world focus could power the country’s next growth wave.
• Valuations are cheap. Risks are well known. And if one macro domino falls the right way – a policy shift, demand recovery, geopolitics thaw – the upside could be substantial.  
• So I built the China AI Deployment 10 basket. These stocks aren’t a moonshot: they’re a leveraged play on one of the most consequential tech shifts in China’s modern economy.

• Suzuki stopping production of the Suzuki swift due to lack of rare earth from China may be the new normal for autos.
• ISpace lunar lander fails to touch down on the moon (again), while Musk is threatening to decommission his Dragon rockets.
• Sekisui House numbers missed on poor margins and order outlook for its US detached housing business.

• Silver prices have rallied 20% YTD to $35.60/oz, supported by strong industrial demand and a persistent market deficit.
• Despite being a small market compared to gold and copper, silver offers niche exposure through major producers like Hindustan Zinc, Fresnillo, and Pan American.
• Structural undersupply, driven by green tech and limited new mine capacity, positions silver as a high-beta hedge and a strategic long-term play.

• Building upon the positive momentum in April, May was once again a positive month.
• All Property Index ended the month up 4.22% in total returns (key to note is that it was the last three trading days that saved Index from a down month).
• Overall market sentiment showed cautious optimism, supported by some encouraging company results, but was arguably saved by the SARB’s 25 bps interest rate cut injecting a shot of optimism.

• Global and Indian textile markets face shifting supply chains due to geopolitical tensions, driving sourcing diversification towards India.
• There’s a significant push for innovation in materials, focusing on man-made fibers, sustainable, and technical textiles globally and in India
• The Indian textile industry benefits from strong government policy support, including protective tariffs and various incentive schemes

• With an IPO valuation of roughly $8.2 billion and current forward P/E of ~32 ×, Circle still looks poised for multiple expansion as regulatory clarity and stable-coin adoption gather pace.
• Deal upsized from 32 m to 34 m shares, and priced $3 above the top of the original range, boosting total proceeds by >20 %
• Public float increases to ~13 % of the company, modestly improving trading liquidity while founders retain long-term control via Class B shares

• Adani Group enters the airport ground handling sector, expanding its operations after Celebi’s exit. It aims to bid for major contracts and compete with established players.
• India’s palm oil imports surged 87% in May due to low stocks and better prices, likely lifting global palm and soy oil prices in coming months.
• Zepto (1936629D IN) postpones its IPO to 2026, shifting focus to private fundraising and cutting cash burn amid growing competition and operational challenges.

• Wise reports a stickier deposit mix than Revolut and is likely to outline an evolutionary service roadmap when it releases FY-25 results on 5 June.
• FTSE-100 lift-off in dollar terms Wise’s September promotion is set to trigger roughly $0.7 – $1.1 billion of forced buying from index-tracking funds.
• Management is willing to fund a selective business product push, adding payroll, treasury and deeper API integrations for SMEs.

• Stocks were mixed as weak hiring and services data signaled slowing growth, while renewed tariff tensions and US-China trade uncertainty pressured sentiment and Treasury yields fell.
• Nintendo’s game console “Nintendo Switch 2” will be released today
• Dalton Investments, a U.S. activist fund, acquired a 5.01% stake in Senko Group Holdings

• Comments from STMicro CEO reflect a similar positiveness from Onsemi management for auto and industrial chips.
• Memory plays strong but still limited follow through for Japanese HDD component makers.
• Plant Labs strong earnings highlights the importance of satellite images…positive IQPS, Synspective and Sky perfect.

• India considers raising safeguard duty on steel from 12% to 24% to protect local steelmakers from Chinese imports and trade diversion.
• India’s wheat and rice production is set to reach record highs in 2025, with wheat at 117.5 million tons.
• Maruti Suzuki India (MSIL IN) faces potential production delays due to China’s rare earth magnet export curbs, though it’s in talks with the government.

• LKNCY US: Luckin coffee launches RMB 6.9/ Cup Coupons (-) 
• 1810 HK: Xiaomi Auto Expected to Turn Profitable in 3Q-4Q25(+)
• New Energy Vehicle: China Major Automakers May 2025 Sales Summary(-)

• TCOM US: Dragon Boat Festival holiday travel volume miss expectations(-) 
• JD US: JD Food Delivery Daily Orders Surpass 25 Million(+)
• 700 HK: Tencent Yuanbao App announces integration with Tencent Maps, enabling precise location (+)

• U.S. stocks rose as Nvidia topped Microsoft in value; job data beat forecasts, but global growth concerns grew amid tariffs and stalled trade talks.
• Meta signed a 20-year deal with Constellation to power AI growth with nuclear energy, supporting relicensing and expansion of an Illinois plant.
• Fast Retailing reported UNIQLO’s domestic same-store sales (including e-commerce) rose 13% year-on-year in May

• New smartphone offering from Micron lifts memory plays which may help EUV also.
• Comments from Onsemi management that auto has turned the corner positive for Rohm, Fuji Elec, Renesas.
• Kadokawa/Bandai Namco’s Nightreign sells 3.5m copies in 4-days, plus a new DLC on the way.

• China’s defence industry is poised to be another major focus going forward. Many stocks have corrected by 3-20% from their recent peaks, presenting interesting opportunities. 
• Most of them are A-share stocks, with business ranging from fighter manufacturing to optical system development to aircraft engine research and production.
• AviChina Industry & Technology H (2357 HK) is the best play, given its Hong Kong listing, undemanding FY25 PER of 13.5x and 56% discount to holdings in A-share subsidiaries.

• DRAM revenues for Q125 amounted to $28.6 billion, up 1.5% QoQ and up 57.4% YoY. 
• NAND Q125 revenues amounted to $13.3 billion, down 20.6% QoQ and down 5.5% YoY.
• Micron’s HBM revenues grew 50% QoQ. Sk Hynix will double HBM revenues YoY. HBM TAM on track to exceed entire DRAM industry 2024 revenues by 2030. Transformation incoming!

• Several Indian sectors have demonstrated a robust recovery in operating margins on a Year-over-Year (YoY) basis as of March 2025 (Q4 FY25)
• This broad-based improvement is primarily attributed to a confluence of industry-wide factors, predominantly the easing of input costs driven by moderating inflation.
• Sectors like Telecom, Metals, Cement, Consumer Durables, Capital Goods, Automobile, Healthcare, EMS are seeing uptick in margins

• U.S. investigates Adani over alleged Iranian LPG imports where Adani denies wrongdoing, calling the accusations baseless and mischievous.
• India’s defence sector hit INR 1.46T in FY25 with record exports, private growth, AMCA launch and INR 2T deals driving future upside.
• RBI may announce a 50-basis point rate cut in June to rejuvenate credit growth and mitigate economic uncertainties.

• Nvidia surpassed expectations in China despite challenges, indicating growth in other areas of their business
• Shift from training to inference era highlighted, with focus on customers buying Nvidia systems for inference
• Competition in the inference market could pose challenges for Nvidia, especially as costs grow and alternatives emerge like Google’s tpu

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

• Trade policy volatility remains unabated, but this week the impact on the furniture and furnishings space was mixed.
• The WTR Commercial/Contract Furniture Index rose 2.6% and the Home Goods Retailers Index was up 2.3%, while the Residential Manufacturers & Suppliers Index declined 1.2%.
• The large-cap indices gained 1.9%, while the R2K gained 1.4%.

• The holiday-shortened week was fairly quiet on the macro front, as certain vaccine-related actions by health agencies were largely expected.
• Mainly affected was MRNA, which had a new COVID-19 vaccine approved with a restrictive label and HHS funding canceled for pre-pandemic bird flu vaccines.
• Public comments for the Section 232 investigation are rolling out, signaling pharma tariffs could be imminent, with expectations of ~25%.

• EV sales rose 9% MoM in May, showing early signs of recovery post-April dip; YoY growth strong at 29%.
• Ola Electric (OLAELEC IN) ’s market share slipped to 19%, while TVS Motor (TVSL IN) and Bajaj Auto Ltd (BJAUT IN) remained steady; market concentration continues.
• Affordability challenges remain, as lower subsidies pressure entry-level demand; OEM pricing and rollout strategies in focus.

• US stocks closed higher Monday despite rising trade tensions with China and the EU.
• ISM data showed US manufacturing activity contracted in May, with imports at their lowest since 2009
• Metaplanet has acquired an additional 1,088 BTC for 17 billion yen, bringing its total holdings to 8,888 BTC

• Applied Digital landing a big data center order from CoreWeave lifting AI related plays setting upbeat tone for SPE.
• Big Chinese SiC capacity coming online further adding to the price pressures for Rohm.
• Square Enix cancelling its ‘Project Gemini’ with Polish developer another foreign flop reminiscent of Avengers?

• This is your Monday morning dose of inspiration. Each week, I’ll share five intriguing investment ideas that recently caught my attention.

• These ideas are meant to spark your research and help you kickstart the week ahead with fresh insights.

• Because these ideas are the result of my first-level idea generation process, they require more in depth research.

• Strong weekly data from the CP market and from granular loan data of US banks
• C&I type lending is also included in the CP market and other loans to FI’s
• Loans to other FI’s is up 21% YoY and C&I lending, reached a new high since early FY24

• Quess Corp Ltd (QUESS IN)‘s restructuring into three entities aims for targeted growth, disciplined capital allocation, and international expansion in emerging sectors.
• India and the US are negotiating an interim trade deal by June 25, aiming for tariff exemptions and increased trade.
• VST Tillers Tractors (VSTT IN) to launch fully electric power tiller and weeder, expanding into the electric farm machinery sector.

• India’s exports are set to surpass $1 trillion by FY26, driven by trade diversification, FTAs, and robust sector growth.
• Bajaj Auto Ltd (BJAUT IN) warns of rare earth magnet shortage impacting India’s EV production by July, urging quick approval for imports.
• HDB Financial Services Ltd (0117739D IN) is close to SEBI approval for a $1.5 bn IPO, set to become India’s largest shadow bank listing.

• Despite volatility driven by Trump’s shifting remarks on China trade, the S&P 500 and Nasdaq ended Friday nearly flat, closing out their best month since November 2023.
• Ukraine launched a major drone attack on Russian military bombers in Siberia, hitting over 40 warplanes at four airfields.
• NEC announced plans to increase revenue for its digital transformation business “Blue Stella” to 1 trillion yen, representing 84% growth from fiscal 2025

• TSMC planning a fab in UAE not enough to lift semi-cap names Friday.
• New Switch on Thursday and the Summer Game Fest on Friday points to upside for laggard developers this week.
• ISpace set to deliver UNESCO cultural hard drive to the moon this Friday.

• The Ministry of Road Transport & Highways(MoRTH) has revised bidding norms for central government road projects, effective April 30, 2025, removing the APS cap and lowering the trigger.
• The EPC sector faced intense competition and aggressive underbidding from less stringent standards, causing project delays and quality issues. 
• These changes aim to deter unsustainable bids, prevent margin erosion, filter speculative players, ease competition, and improve project execution and quality.