Daily Brief Equity Bottom-Up: AEM Holdings: Nvidia’s Investment in Intel to Drive AEM Re-Rating? and more

• Last week NVIDIA Corp (NVDA US) announced a 5 billion USD investment into Intel Corp (INTC US). 
• If the collaboration between the two tech giants is successful, it could lead to a revival of the entire Intel supply chain.
• AEM (AEM SP) has historically been closely linked to Intel, so any revival of Intel has the potential to benefit AEM substantially.

• Press reports indicated that China could temporarily suspend purchases of BHP’s iron ore from Jimblebar, which could account for a mid-single digit percentage of revenue
• The UK press reported Geraldine Slattery will likely be BHP’s new CEO, who currently heads BHP’s Australian operations and has over three decades with the company
• BHP is 4% above our DCF, its 2.8x P/B is not clearly excessive or attractive, and we see risks to iron ore, copper and coal prices from a broad slowdown

• Cash Converters International (ASX:CCV) is a consumer finance company operating as a service provider, owner and franchisor of second-hand goods and financial services stores in Australia and internationally.
• CCV is currently executing a clearly stated growth strategy involving the reshaping of its personal finance business complemented by growing its corporately-owned store network through acquisition.
• The recent FY25 result was a strong representation of a business that is successfully transitioning and a good leading indicator of the changing business mix which should ultimately result in a business that is geographically broadened yet operating a simplified lending business, with a lower risk profile and improved growth funding optionality.

• Exide Industries is doubling down on lithium-ion cell and pack manufacturing with huge committed capex, while sustaining its dominant lead-acid franchise.
• The company’s strong cash flows from lead acid batteries are funding high-risk, high-reward bets on EV and renewable storage, positioning it as India’s only dual-chemistry energy storage leader.
• Execution risk in lithium-ion scale-up is high, but Exide’s brand equity provide a buffer. The story now hinges on whether early-mover advantage in Li-ion can translate into sustainable returns.

• Largest IPO 2025: EMAS IJ raised ~USD 281m, 4.6× oversubscribed, spun off from MDKA to fund Sulawesi’s Pani Gold Project.
• Asset Scale: Pani holds 1.9 Moz reserves, 7 Moz resources; production to ramp from 145 koz (2026) to ~500 koz (2032).
• Valuation & Risks: IPO EV ~USD 3.2 bn; ~8–9× EV/EBITDA during 2026–29 heap leach, falling to ~2–3× at 2032 steady-state; execution, funding risks remain.

• Historical Context is Crucial: This report analyzes Xilinx Inc. as a standalone entity prior to its acquisition by Advanced Micro Devices (AMD), which was announced in October 2020 and completed in February 2022. Xilinx ceased trading on the NASDAQ post-acquisition. Therefore, this primer serves as a historical analysis of a foundational semiconductor company.
• Dominant FPGA Market Leader: Xilinx was the inventor of the Field-Programmable Gate Array (FPGA) and the market leader, consistently holding over 50% market share. Its primary competitor was Altera, which was acquired by Intel. The company’s core strength was its highly flexible and adaptive processing platforms that enabled rapid innovation across diverse, high-growth markets like data centers, 5G communications, automotive, and aerospace & defense.
• Strategic Pivot to Platform Company: Under the leadership of CEO Victor Peng, Xilinx successfully transitioned from a chip supplier to a platform-centric company, focusing on high-growth areas like data center acceleration and AI inference. This strategy involved significant R&D investment and acquisitions to bolster its software and IP portfolio, leading to strong revenue growth in its targeted markets prior to the acquisition.

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• China Satellite Communications (China Satcom) is a core professional subsidiary of China Aerospace Science and Technology Corporation, holding a national basic telecommunications business license. It is the primary operator of satellite communications in China, with a fleet of geostationary satellites covering China, Southeast Asia, South Asia, the Middle East, Africa, Europe, and the Pacific.
• The company’s revenue streams are primarily derived from satellite resource leasing and value-added services, including broadcasting, telecom, corporate, and government applications. While revenue has seen a slight decline in recent years, the company maintains a strong market position within China.
• The global satellite communication market is projected to experience significant growth, driven by the increasing demand for high-speed internet, particularly in remote areas, and the expansion of applications in the military, aviation, and maritime sectors. This presents both opportunities and challenges for China Satcom as the industry landscape evolves with the rise of LEO constellations and new technologies.

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• Transformation into a Diversified FMCG Major: Tata Consumer Products (TCPL) is aggressively diversifying beyond its core tea and salt businesses, moving into higher-growth categories like packaged foods (Tata Sampann), snacks (Tata Soulfull), and ready-to-drink beverages. Recent acquisitions of Capital Foods (Ching’s Secret, Smith & Jones) and Organic India significantly expand its total addressable market and enhance its presence in high-margin segments.
• Strong Brand Equity and Distribution as Key Moats: The company leverages the immense trust associated with the ‘Tata’ brand, providing a significant competitive advantage. Its extensive distribution network, reaching millions of retail outlets, combined with a growing e-commerce presence, creates a formidable barrier to entry and a platform to scale new product launches and acquisitions effectively.
• Focus on Premiumization and Innovation Driving Growth: TCPL is strategically focused on premiumizing its portfolio across categories, such as value-added salts and premium tea variants, to capture evolving consumer preferences and improve margins. A consistent pipeline of new product launches, particularly in health and wellness, caters to modern consumer trends and is a key driver of future growth.

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• Leading Digital Bank and Auto Financier: Ally Financial holds a strong position as the largest all-digital bank in the U.S. and a dominant player in the automotive finance market. This dual focus provides diversified revenue streams and a solid customer base.
• Financial Performance and Shareholder Returns: The company has demonstrated a commitment to shareholder returns through consistent dividend payments. Recent financial performance shows a significant rebound in Q2 2025, with adjusted EPS beating analyst expectations, driven by an expanded net interest margin and disciplined cost control.
• Navigating a Challenging Environment: Ally faces headwinds from intense competition in the financial services industry, potential economic downturns impacting loan performance, and a dynamic regulatory landscape. The company’s reliance on the auto lending market also exposes it to risks associated with this specific sector.

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• Everbright Securities is a prominent, state-affiliated financial services firm in China with a comprehensive business model spanning wealth management, investment banking, and asset management.
• The company’s financial performance is inherently tied to the volatility of China’s capital markets, as evidenced by recent declines in revenue and net income following periods of strong growth. Regulatory shifts and intense domestic competition are key factors influencing its operational landscape.
• Strategically, the firm is focused on optimizing its capital structure and expanding into higher-margin businesses like institutional brokerage and wealth management to navigate the highly fragmented and competitive domestic market.

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