In today’s briefing:
- 2026 High Conviction Idea: SK Inc
- Asian Equities: Rebalancing Our Model Portfolio – More to India and ASEAN
- NVIDIA Invests $2 Billion In Synopsys. But Why?
- Meesho’s Valmo | Erosion of Delhivery’s Margins
- JFE Holdings: India JV Resets Long-Term Growth Path; Deep Value with Structural Upside
- Stockland (SGP AU) Vs. The GPT Group (GPT AU): Valuation Supports Long/Short Stat Arb Opportunity
- Key Insights From Vale Day 2025: Strategy Recast for a New Metals Cycle
- A Review of Korean Small Cap Gems in 2025
- Tuhu Car (9690 HK | BUY | TP:HKD23): Tuhu Goes International, the Next Engine of Growth
- Geechs (7060 Jp) – Q2 Follow-Up: November 28, 2025
2026 High Conviction Idea: SK Inc
- Three main reasons why SK Inc is our high conviction in 2026 include mandatory cancellation of treasury shares, deep discount to NAV, and the end of divorce for Chairman Chey.
- SK Inc has 17.98 million shares in treasury, representing 24.8% of outstanding shares. Among the stocks included in KOSPI200, this is one of the highest percentage of treasury shares.
- Our NAV valuation analysis suggests NAV of 28 trillion won or NAV per share of 386,469 won. This represents a 46% upside to its current price.
Asian Equities: Rebalancing Our Model Portfolio – More to India and ASEAN
- Since inception (May 15th), our Model Portfolio has appreciated 17.0% – same as MSCI Asia-ex Japan. Since the last rebalancing (7th November) our Portfolio declined 2.5% vs MXASJ’s 1.3% drop.
- The recent underperformance came from drawdowns in Tencent Music, Tencent, Alibaba, Hynix, Hyundai Rotem, TSMC. We reduce the first two slightly, exclude BBCA, include Adani Ports, SCB, MAPI, HK Land.
- We remain Overweight HK/China and Korea. We upgrade India to Overweight from Neutral, Thailand from Underweight to Neutral, and downgrade Indonesia to Underweight from Neutral. Stay Underweight Taiwan, Neutral Singapore.
NVIDIA Invests $2 Billion In Synopsys. But Why?
- NVIDIA & Synopsys announced a new strategic partnership on Dec 1, mostly covering topics they were already strategically partnering on, with one exception, Cloud-Ready Solutions
- The partnership sees NVIDIA purchase $2 billion worth of Synopsys stock in a private placement. Other, recent, similar strategic partnerships e.g. Siemens & GM, involved no such investment
- They plan to start enabling cloud access for GPU-accelerated engineering solutions. Could this be where that $2 billion finds a home? Is this a new Neocloud in disguise? Let’s see
Meesho’s Valmo | Erosion of Delhivery’s Margins
- Delhivery (DELHIVER IN) faces immediate volume erosion as Meesho (1546271D IN) migrates 65% of orders to Valmo, destabilizing a key client relationship historically contributing ~16% of total revenue.
- Valmo’s rise structurally shrinks the addressable 3PL market, creating a permanent headwind that compresses pricing power and intensifies competition for remaining open volumes.
- Anchor client insourcing caps Delhivery’s growth trajectory, rendering the Ecom Express acquisition insufficient to offset the structural decay in organic B2C volume velocity.
JFE Holdings: India JV Resets Long-Term Growth Path; Deep Value with Structural Upside
- BPSL JV gives JFE a scalable India platform, shifting long-term growth away from a stagnant Japan market.
- Balance-Sheet impact is manageable, with optional liquidity from the ¥500 bn JSW stake.
- Valuation deeply discounted at 0.5× P/B and US$525/t despite rising mix, India optionality, and multi-year earnings normalization.
Stockland (SGP AU) Vs. The GPT Group (GPT AU): Valuation Supports Long/Short Stat Arb Opportunity
- Context: The GPT Group (GPT AU) vs. Stockland (SGP AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights: Going long Stockland (SGP AU) and short The GPT Group (GPT AU) targets a 4% return, with Stockland (SGP AU) supported by a lower P/E multiple.
- Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.
Key Insights From Vale Day 2025: Strategy Recast for a New Metals Cycle
- Vale cuts 2026 iron ore guidance to 335–345 Mt as China’s weaker demand and rising scrap reduce seaborne needs by about 160 Mt.
- Steel decarbonisation accelerates through global EAF expansion, pushing Vale toward a flexible blend of high-grade, mid-grade, and corrective ores to maximise value.
- Vale and Glencore’s Sudbury study targets 880 kt copper over 21 years, leveraging shared infrastructure to curb costs and bolster North American supply.
A Review of Korean Small Cap Gems in 2025
- In this insight, we review our Korean Small Cap Gem insights that we published in 2025. We published 18 Korea Small Cap Gem Series insights in 2025.
- The 18 Korean Small Caps have generally performed well this year. They were up on average 17% and 45%, respectively one week and two weeks after the insights were published.
- Some of the best performing stocks so far this year include Chunil Express (000650 KS), Aurora World (039830 KS), Makus Inc (093520 KS), and Flitto Inc. (300080 KS).
Tuhu Car (9690 HK | BUY | TP:HKD23): Tuhu Goes International, the Next Engine of Growth
- Tuhu sets up operations in Malaysia, its first overseas expansion outside of Greater China.
- We think Tuhu can dominate the market within 3-4 years, as there are no local establishments that can match its infrastructure, know-how, and capital base.
- Fair value of HKD23 implies 22x FY26 PE – average for US peers. A bargain with 3-year CAGR of 30%, net cash, and churns high free cash flow.
Geechs (7060 Jp) – Q2 Follow-Up: November 28, 2025
- On November 13, Geechs Inc. (hereafter, “the Company”) announced its Q2 FY2026/3 (Jul-Sep) earnings results.
- Net sales rose 2.5% YoY to JPY 6,518 mn, EBITDA rose 86% YoY to JPY 278 mn, and operating profit rose 124.9% YoY to JPY 253 mn.
- In addition to steady expansion of the core Japan IT Human Resources Matching Business (hereafter, “Japan IT HRM Biz”), faster-than-expected profitability in the IT Human Resources Matching Business, Overseas (hereafter, “Overseas IT HRM Biz”) and stronger-than-planned growth in the Seed Tech business contributed to results.
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