Daily Brief Equity Bottom-Up: CATL Breaks Ground on $6 Billion Indonesian Battery Hub and more

• Chinese battery titan Contemporary Amperex Technology Co. Ltd. (CATL) has broken ground on a nearly $6 billion project in Indonesia, marking a bold strategic move to secure crucial materials and expand its manufacturing footprint beyond China.
• The project — a joint venture between CATL subsidiary CBL, Indonesia’s state-owned miner PT Aneka Tambang (Antam), and the state-backed Indonesia Battery Corporation (IBC) — has officially started construction, CATL said Wednesday.
• More than three years in the making, the initiative underscores the ambition of the world’s largest battery manufacturer to reinforce its global standing amid increasingly complex geopolitical dynamics.

• We have found another gem in the Korean small cap industry. Messe ESANG is #39 in our Korea Small Cap Gem Series.
• Messe ESANG (408920 KS) is the number one player in South Korea’s exhibition and convention industry. 
• The company has a combination of strong sales growth, excellent operating margins, improving ROE, sound balance sheet, and cheap valuations. 

• Smartworks, India’s largest managed campus operator, is launching a INR 582.56 crore IPO, combining fresh issue and OFS to fund expansion and reduce debt. 
• Smartworks shows strong growth in operational metrics and high occupancy underline rising demand, but consistent losses, high debt, and client concentration remain key concerns. 
• While the industry outlook is robust, the success depends on Smartworks achieving profitability, managing risk, and sustaining client retention in a competitive market.

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

• Patek Philippe is a premier watchmaker with a rich history and unmatched craftsmanship
• The brand is differentiated from others like Rolex by its exclusivity, handmade quality, and tradition of creating the finest watches in the world
• John Reardon from Collectability provides insights into what makes Patek Philippe a special and highly sought-after brand

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• Banco Santander’s third-quarter financial results for 2023 demonstrate a mixed performance, albeit with solid progress in executing its long-term strategy.
• The company recorded a quarterly profit of EUR 3.3 billion, marking a 12% year-over-year increase, driven by a customer base that has expanded to 171 million.
• For the first nine months of the year, the bank achieved a record profit of EUR 9.3 billion, up 14%.

• Sales increased by JPY985mn (+7.7% YoY) with growth in Creative (Japan), Medical, and CRES segments; operating profit rose by JPY159mn (+12.7% YoY).
• Progress toward FY02/26 forecast: 23.1% for sales, 28.4% for operating profit, 28.1% for recurring profit, 28.6% for net income.
• CRES segment sales rose 205.0% YoY to JPY23mn, but recorded an operating loss of JPY41mn.

• Markel Group’s recent financial performance presents a nuanced picture of its strategic initiatives and operational dynamics.
• On the positive side, the company has demonstrated resilience in its various business segments, showing strong potential for sustainable growth.
• Markel’s comprehensive approach to capital allocation has been characterized by strategic investments and share repurchase activities, which are expected to yield favorable returns over the long term.

• Novonesis has delivered a robust performance in the first quarter of 2025, highlighted by an 11% organic sales growth.
• This includes a 10% growth driven by volume and an additional 1% from pricing.
• The company has shown widespread geographic stability with emerging markets experiencing a substantial 15% growth, while developed markets reported a 9% increase.

• We are reiterating our Buy rating, projections and $22.50 price target for Betterware de Mexico as we look at key trends for 2HFY25 and beyond.
• We believe BWMX has remained weak in 2025 (down 14% YTD) as worries remain over the health of the Mexican consumer and a material 1Q25 miss, which also resulted in a 20% cut in the annual dividend rate.
• While management maintained the 2025 annual guidance, we believe the Street is already projecting the company will have to reduce overall guidance.