Daily Brief Equity Bottom-Up: Asian Equities: Our Asian Robust Dividend Yield Basket – Revisiting After Sharp Outperformance and more

• Since inception on February 23, our Robust Dividend Yielders basket has generated 20.3% total return, vs MSCI Asia-ex-Japan’s 11.34%. 10 stocks in our basket of 23 appreciated more than 20%.
• We reconstruct our basket screening all Asian stocks > US$2bn market cap, dividend yield >6% in 2025 and 2026, EPS CAGR > 5% and upward revision to EPS forecasts.
• Our new Dividend Yield basket has 15 stocks, 10 from HK, 3 from onshore China, 1 each from Indonesia and Singapore. Bosideng is the only stock common in both baskets. 

• Infosys Ltd (INFO IN) reported a stable Q1FY26 with constant currency (CC) revenue growth of 2.6% QoQ and 3.8% YoY, despite persistent macro headwinds in key geographies.
• While the company increased its lower end of guidance from 0 to 3% to 1%-3% CC, the sector still faces challenges from macro uncertainty.
• While there are no fireworks in the results, it is much getter than Tata Consultancy Svcs (TCS IN) . We present analysis on the same.

• Although Taiyo Kagaku is not a household name among consumers in Japan, it has a strong reputation in Japan and internationally among F&B companies for functional, health-enhancing ingredients.
• Three main reasons we like the stock include strong loyal customers in the F&B segment in Japan/internationally, solid growth of sales and profits, and attractive valuations. 
• Taiyo Kagaku currently has a SmartScore of 4.6 out of 5 which is among the top ranking stocks in the Japanese stock market. 

• Days before the 2025 World Artificial Intelligence Conference is to begin in Shanghai, Amazon’s Shanghai-based AI research institute — once a centerpiece of the event’s inaugural launch — is facing its imminent closure, marking the end of Amazon Web Services Inc.’s last overseas AI lab.

• Wang Minjie, an applied scientist at AWS AI Shanghai Lablet, shared on Chinese social media platform WeChat on Tuesday that the lab will be dissolved due to “strategic adjustments between China and the United States.”

• Amazon did not deny the closure. In a statement to Caixin, the company said, “Following a comprehensive evaluation of our organizational structure, growth priorities and future strategic direction, we have made the difficult decision to streamline certain teams within AWS China. We are committed to supporting affected employees through this transition.”

• RHB Bank is now our sole pick in Malaysian banks, topping our proprietary scorecard; it retains strong fundamental value credentials, with an improving cost of risk trend
• We downgrade CIMB shares to a hold from a buy; the valuations are less compelling than RHB and it has further to improve on credit quality and returns
• PB Bank is a name to watch for its sustained premium returns, and for its position as the peer group benchmark in terms of ROE, credit quality and efficiency ratio

• Revenue increased by 40.9% YoY to JPY7.2bn, with operating profit up 67.6% YoY to JPY2.7bn.
• Capital gains reached JPY3.2bn (+29.7% YoY), primarily from listed shares, with an investment multiple of 2.1x.
• Total investment executed was JPY6.8bn, with JPY3.2bn in domestic VC investments, averaging 20.4% equity stakes.

• Forge announced that while driving the decline at the La Estrella project, a coal seam was encountered measuring 0.5-1.0m in thickness.
• The Company has taken channel samples for lab analysis to assess the coal’s quality and market suitability.
• We recently initiated coverage on FRG, read the report here.

• A brief look at important company events and economic data releases next week.

• Exchanges like the Chicago Mercantile Exchange serve the crucial function of bringing buyers and sellers together, ensuring transactions are completed smoothly and efficiently.
• Clearinghouses, coordinated by exchanges, play a vital role in finalizing transactions and mitigating risks, acting as a safety net to guarantee trades will settle even if one party defaults.
• CME Group specializes in futures contracts, offering a wide range of products and deep liquidity pools for global benchmark products, making it a leading marketplace for derivatives globally.

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• Octopus Energy Ltd., Britain’s largest power utility, has partnered with Chinese electric vehicle (EV) giant BYD Co. Ltd. on a service in the U.K. that can help EV owners cut down on charging costs by providing them with a way to supply electricity to the grid.
• The Power Pack Bundle, launched last month, offers customers a leased BYD Dolphin and a special two-way charger that turns the car into a battery that can send electricity back to the grid during peak hours.
• This is one application of the vehicle-to-grid (V2G) system, creating a two-way street for electricity to flow between charging stations and EVs. This allows cars to charge up when power is abundant and provide electricity back into the grid when demand surges.