In today’s briefing:
- Alibaba (BABA): 4Q25, Main Business Growth Recovered to 12% YoY, Buy
- KE (BEKE): In 1Q25, Rental and New Home Revenues Up by 94% and 64%
- How Nexon (3659) Got Its Mojo Back
- Eisai Co Ltd (4523 JP): Leqembi at a Growth Juncture as New Markets Open Up; Margins Under Pressure
- China – US: More US Restrictions on Chinese Firms, but Chinese Equipment Firms Are Growing Fast
- Belrise Industries IPO: Strategic OEM Partner, Deleveraging Move Faces Structural Headwinds
- Philippine Stock Exchange (PSE PM): Inflection In Q1 2025, More Catalysts To Come
- PC Monitor: Asus Results Warn of Coming Slowdown; PCs’ Next Edge AI Shift
- SGX Group (SGX SP): Likely More Listings. Triggered by Trade Tensions, Tax Perks
Alibaba (BABA): 4Q25, Main Business Growth Recovered to 12% YoY, Buy
- Management claimed 4Q25 total revenue should grow by 10% YoY excluding two sold subsidiaries.
- The growth rate of customer management revenue rose to two digits in 4Q25.
- The main business margin was stable and most of the minor business margins rose YoY in 4Q25.
KE (BEKE): In 1Q25, Rental and New Home Revenues Up by 94% and 64%
- In 1Q25, BEKE’s active stores increased by 29% YoY and total revenue increased by 42% YoY.
- New home revenue and rental revenue grew by 64% YoY and 94% YoY in 1Q25.
- We believe the stock price can double and is undervalued for the concerns on the general property market.
How Nexon (3659) Got Its Mojo Back
- Nexon underperformed the software segment by 32% in the past 12 months, and analysts expect earnings to decline over the next 5 years.
- But the company beat Q1 consensus EBIT estimates.by 54% and the stock lurched 17% the very next day.
- Nexon’s business is immune to tariffs and tends to perform well in recessions. The company’s pipeline appears to be stronger than anyone imagined.
Eisai Co Ltd (4523 JP): Leqembi at a Growth Juncture as New Markets Open Up; Margins Under Pressure
- In FY25, Eisai Co Ltd (4523 JP) reported 6% YoY growth in revenue, driven by 3Ls. Operating profit rose 2% YoY and net profit climbed 9% YoY to ¥46B.
- Eisai guided for FY26 revenue of ¥790B, flat YoY. Revenue for Leqembi is expected to grow significantly (¥76.5B, up 73% YoY). Operating profit is expected to remain flat at ¥54.5B.
- Leqembi’s potential market expansion holds promise, especially in the developed economies with the proportion of aged population gradually on the rise and with a dearth of suitable treatment options available.
China – US: More US Restrictions on Chinese Firms, but Chinese Equipment Firms Are Growing Fast
- More US restrictions on export of SPE Semi Production Equipment to Chinese firms (CXMT, SMIC, YMTC). The big increase in Chinese spending was done over 2023-24, it’s declining in 2025-26.
- Chinese domestic SPE vendors are growing fast and gaining share from AMAT, LAM, TEL. ASML is a monopoly below 65nm. KLA is very dominant. Focus on best 2: ASML, KLA.
- China’s efforts to grow its own supply chain and equipment makers will continue, AMEC and Naura are the leaders. Consolidation could start.
Belrise Industries IPO: Strategic OEM Partner, Deleveraging Move Faces Structural Headwinds
- Belrise Industries, founded by the Badve family, is a leading auto component maker launching its Rs2,150 crore IPO from May 21–23, 2025, at a price band of Rs85–90.
- It supplies key chassis and metal parts to top OEMs like Bajaj Auto, Hero MotoCorp, and HMSI, playing a critical role across ICE and EV platforms.
- While most proceeds are earmarked for debt repayment, high working capital needs suggest leverage could rebuild as the business scales.
Philippine Stock Exchange (PSE PM): Inflection In Q1 2025, More Catalysts To Come
- Philippine Stock Exchange (PSE PM) reported an encouraging Q1 2025 with revenue/operating income up 82%/72% YoY, buoyed by the acquisition of PDS.
- Despite acquiring 91.6% of PDS (as of 15 May 2025), the company has net cash and investments of 4.8 bn pesos, representing more than 30% of its current market capitalization.
- Trading at 13x PE, with a >6% forward dividend yield, and ex-cash ROCE>20%, the stock is cheap. We believe there is a long runway for growth with multiple catalysts.
PC Monitor: Asus Results Warn of Coming Slowdown; PCs’ Next Edge AI Shift
- ASUS beat 1Q25 expectations, but flagged tariff risks and a potential PC demand slowdown in 2H25 as consumers front-load purchases ahead of pricing uncertainty.
- PC segment growth outperformed the market, led by >30% YoY gains in commercial PCs and strong momentum in AI-capable and gaming systems.
- On-Device AI execution is emerging as the next PC evolution; Asus is preparing for this shift with GX10 edge devices and deeper integration of AI across product lines.
SGX Group (SGX SP): Likely More Listings. Triggered by Trade Tensions, Tax Perks
- Reported surge in listing interest on SGX (SGX SP) driven by escalating U.S.- China trade tensions and associated geopolitical uncertainties.
- Singapore’s proactive policy toolkit announced in February 2025 offer issuers both cost savings and regulatory certainty and could play a role in attracting more companies to list in Singapore.
- An uptick in listings on the Singapore Exchange (SGX) can set off a virtuous cycle, strengthen valuation multiples and lead to upward revisions to 2026 earnings forecasts.
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