Daily Brief Equity Bottom-Up: Atlas Arteria (ALX AU): IFM Creeps To A ~35% Stake and more

• Back on the 8th June 2022, IFM Global Infrastructure Fund announced a 15% stake in Atlas Arteria (ALX AU) (ATLAX), and subsequently floated the possibility of a non-binding proposal. 
• However, IFM’s request, at the time, for limited company information on ATLAX , a US/Europe toll-road play, came to nought.
• Undeterred, IFM continues to accumulate shares. Reportedly, IFM now holds ~35% after picking up 1.9% this morning.

• Singapore Airlines (SIA SP) is growing its footprint in India, presenting an interesting opportunity for long term investors. 
• However, it may come slightly costly in the near term as Indian aviation infrastructure is not that ready just yet. 
• Singapore Airlines (SIA SP) does not trade at a significant discount to its peers from PER and PBR. 

• We were correct not buying at a 51 FPE (at the top), despite our bullish view on their oncology portfolio of drugs.
• With hindsight, we were early at the end Oct 2024 at 39 FPE – numbers disappointed and the counter derated significantly.
• At a 16.5 FPE, expectations are very different. Enhertu has moved from strength to strength and has just achieved its first billion dollar quarter.

• Baidu, Inc. delivered a solid performance in the first quarter of 2025, with its Baidu Core division reporting a 7% year-over-year revenue increase, reaching RMB 25.5 billion.
• This growth was primarily driven by a substantial surge in its AI cloud business, which saw a 42% increase year-over-year, contributing significantly to Baidu Core’s overall revenue.
• A notable development within this business unit is the expansion of the AI cloud’s role in Baidu’s operations, now accounting for 26% of Baidu Core’s revenue, up from 20% in the previous year.

• Merck & Co., Inc.’s third-quarter performance demonstrates its commitment to leveraging scientific advances to deliver value in the healthcare space.
• The company’s revenue for the quarter reached $17.3 billion, a growth of 4% despite foreign exchange headwinds.
• This growth was primarily driven by the continued strength of its oncology segment, notably the drug KEYTRUDA, which saw an 8% increase in sales, contributing $8.1 billion.

• Warren Buffett’s Berkshire Hathaway has disclosed a significant new position in Alphabet Inc., acquiring 17.9 million shares valued at approximately $4.9 billion during Q3 2025.
• This development marks a notable strategic shift by Berkshire, as it trimmed positions in long-held names such as Apple Inc. and Bank of America while initiating and expanding positions in Alphabet, UnitedHealth, and Chubb.
• Alphabet’s shares climbed in extended trading following the announcement, which signals investor enthusiasm over Buffett’s endorsement.

• The generic availability of GLP-1 drugs from 2026 presents a structural, high-volume, and repetitive diagnostics opportunity that perfectly fits Thyrocare’s low-cost, centralized B2B model.
• Thyrocare Technologies (THYROCAR IN) reported robust Q2 FY’26 consolidated revenue growth of 22% YoY, coupled with a normalized EBITDA margin expansion to 34.8%.
• Strong execution and quality improvements position Thyrocare to capture this multi-year GLP-1-driven volume surge.

Since completing its merger with Mandalay Resources on 5 August, Alkane has 1) provided guidance for the combined group for FY26, 2) updated group reserves and resources and 3) released its Quarterly Activities Report for Q126. In the wake of these announcements, we forecast that the ‘new Alkane’ will produce c 158.8koz (plus c 4.3koz AuE in the form of antimony) in FY26 (cf 70.1koz in FY25) and that the merger will prove transformative to both its scale and valuation, including achieving the size required for inclusion in the VanEck Junior Gold Miners ETF (GDXJ) and the ASX 300 index (now confirmed).

• Celsys reported cumulative Q3 FY12/25 sales of JPY7.0bn (+15.9% YoY), operating profit of JPY2.2bn (+39.0% YoY).
• Celsys revised FY12/25 forecast: sales JPY9.3bn, operating profit JPY2.9bn, net income JPY1.4bn, citing strong subscription growth.
• Creator Support segment sales JPY6.0bn (+19.4% YoY), driven by CLIP STUDIO PAINT upgrades and global expansion efforts.

• Apple, Qualcomm, and Tesla are all hiring for EMIB-class advanced packaging, signalling an industry shift toward tech where Intel holds a structural edge.
• Intel’s “packaging-first” strategy outlined last year is now visible in real customer activity; foundry share will be won through packaging long before leading-edge wafers.
• With TSMC carrying excess capacity, IFS enters a rare window where early 18A traction and EMIB pull-through can create a credible path to 14A volume wins.