In today’s briefing:
- Quiddity Leaderboard ChiNext & ChiNext 50 Dec25: ~US$900mn Combined Flows One-Way; New Pair Trades
- StubWorld: Stay Long Sun Corp (6736 JP)
- Digi Plus Interactive (PLUS PM): Strong Q2 FY25, But Regulatory Cloud A Massive Overhang
- Webtoon Entertainment: Secures a Big Contract With Disney
- Hikari Tsushin (9435 JP): Q1 FY03/26 flash update
- Qb Net Holdings (6571 JP): Full-year FY06/25 flash update
- Goldiam International: Riding on Lab-Grown Exports Despite Tariff Uncertainty
- Geely (175 HK): 2Q25, Revenue Up by 28% YoY
- Synchro Food (3963 JP): Q1 FY03/26 flash update
- Tear Corp (2485 JP): Q3 FY09/25 flash update
Quiddity Leaderboard ChiNext & ChiNext 50 Dec25: ~US$900mn Combined Flows One-Way; New Pair Trades
- The ChiNext index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
- The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
- We see 5 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the next index rebal event.
StubWorld: Stay Long Sun Corp (6736 JP)
- Sun Corp (6736 JP) is a clear value play. But not as cheap to 44.3%-held Cellebrite DI (CLBT US) as it was recently. Opt for a net long trade here.
- Preceding my comments on Sun Corp – and JG Summit Holdings (JGS PM) / Universal Robina (URC PM) – are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
Digi Plus Interactive (PLUS PM): Strong Q2 FY25, But Regulatory Cloud A Massive Overhang
- DigiPlus Interactive (PLUS PM) reported robust Q2 FY25 results with revenue/net profits up 30.6%/30.1% YoY, driven by an increase in MAUs to 8.5 million from 7.5 million in Q1FY25.
- Net margins remained flat YoY at 17%, as a decline in franchisee fees and taxes was offset by an increase in A&P spend as marketshare declined to 39% (vs 45%).
- The stock trades at 6.9x FY25e, with multiple expansion catalysts. On the flipside, the regulatory concerns (on restrictions on online gaming) still cloud the sector.
Webtoon Entertainment: Secures a Big Contract With Disney
- Webtoon Entertainment (WBTN US) has secured a big contract with The Walt Disney Co (DIS US) including Avengers and Spider Man to become available in webtoon format.
- We believe Webtoon Entertainment could grab about 20% of the global market for webtoons in 2030 which would be about $4 billion in revenues.
- Assuming a net margin of 10% and a P/E multiple of 20x, it suggests market cap of $8 billion for Webtoon Entertainment by 2030 (264% upside from current levels).
Hikari Tsushin (9435 JP): Q1 FY03/26 flash update
- The company reported Q1 FY03/26 revenue of JPY167.2bn (+14.4% YoY) and recurring income of JPY43.5bn (+12% YoY).
- New segmentation in Q1 FY03/25 includes seven reportable segments; revenue and profit figures adjusted retroactively.
- Dividend for Q1 FY03/26 set at JPY181 per share, with total payout of JPY7.9bn, effective September 12, 2025.
Qb Net Holdings (6571 JP): Full-year FY06/25 flash update
- Revenue rose JPY786mn YoY, driven by growth in Domestic and Overseas Operations, with a +3.2% full-year increase.
- Operating profit declined JPY430mn YoY due to unplanned costs in Domestic Operations and increased talent development investment.
- The company opened 43 new salons, increasing the total salon count by 33 YoY to 724.
Goldiam International: Riding on Lab-Grown Exports Despite Tariff Uncertainty
- Goldiam International reported its highest-ever Q1 results, with sales increasing by 39% year-on-year (YoY) and 17% quarter-on-quarter (QoQ).
- The most standout update from the company is that it has able to pass on additional tariffs to US consumers despite a muted demand environment
- Company is now raising growth capital of close to INR 250 crores via QIP and also expanding its backward integration, which will improve its performance further
Geely (175 HK): 2Q25, Revenue Up by 28% YoY
- In 2Q25, Geely’s revenue increased by 28% YoY in 2Q25 and its vehicle deliveries increased more rapidly by 47%.
- We believe Geely is the only competitor to the market leader BYD.
- We set the target price at HK$23 for the next twelve months, which is 21% above the current price.
Synchro Food (3963 JP): Q1 FY03/26 flash update
- Q1 FY03/26 revenue was JPY944mn, a 6.6% YoY decrease, with operating profit down 38.8% YoY to JPY184mn.
- Media Platform business revenue increased 0.7% YoY, but segment profit declined 24.2% YoY, with user growth at 7.6%.
- M&A Intermediary business revenue fell 60.0% YoY, with segment profit declining from JPY57mn to a JPY2mn loss.
Tear Corp (2485 JP): Q3 FY09/25 flash update
- Sales increased 20.5% YoY to JPY16.8bn, driven by consolidation of Hakkoden and Tokai Tenrei and growth in funeral services.
- Operating profit rose 46.5% YoY to JPY1.8bn, with recurring profit up 70.1% YoY and net income up 69.3% YoY.
- The number of funerals rose 12.6% YoY to 15,321, with average funeral price increasing 4.4% YoY.
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