Daily Brief Equity Bottom-Up: Fast Retailing (9983) | Global Gains Keep It in Fashion and more

• Guidance slightly ahead: FY8/26 outlook modestly above consensus at both revenue and operating profit, signalling continued steady growth.
• Global strength offsets China: Expanding international markets and yen tailwinds continue to drive profitability, plus an end to lingering China weakness?
• Valuation supportive: Trading below historical averages on EBIT and P/E, offering global exposure at a reasonable multiple.

• Our NAV analysis of Samsung C&T suggests implied market cap of 43 trillion won or target price of 253,146 won per share which is 28% higher than current price. 
• The biggest components of Samsung C&T’s value is its stakes in Samsung Electronics and Samsung Biologics which are worth 54.1 trillion won (161% higher than Samsung C&T’s current market cap).   
• In the past three months, the share price discrepancy between Samsung Electronics and Samsung C&T is more noticeable (Samsung Electronics – up 47.3% versus Samsung C&T – up 15.9%). 

• Indo Tambangraya Megah (ITMG IJ) recently announced a 10% buyback, reaffirming our bullish stance on the company. With 67% of its market capitalization in cash, it can be easily accomplished. 
• The company can also maintain its 65% payout ratio, which equates to an 8% yield on net profits of $180-200 million USD for FY25. 
• We now look to November 3rd, 2025, as the next catalyst, when the shareholder meeting (GMS) will be held to vote on the buyback, among other decisions.

• Total deliveries grew by 35% YoY in Sep. 2025 and 43% YoY in 3Q25.
• BEV (Battery Electric Vehicle) deliveries were double of the same period last year.
• We believe the stock has at least 29% upside for next 12 months.

• Singapore’s stellar performance has been propelled primarily by large caps. We think investors should focus on SMID now, as MAS’s S$5bn EQDP incentivizes fund managers to look outside index stocks.
• We screen SMID stocks in SGX with above-market forecast earnings growth, EPS estimate upgrades over past 6 months, low leverage and reasonable growth adjusted valuations (PEG<1.4x).
• Eight SMID stocks come up on our screen, spread across various sectors, but tilted towards Energy and Minerals and Mining. Most are net cash companies with ROEs higher than COEs.

• Trent Ltd (TRENT IN) reported first half FY2026 revenue growth at 19%, well below the Street’s full-year consensus estimate of around 26%.
• With Zudio store expansion wave now maturing and no new growth engine of comparable scale yet in sight, revenue growth appears to be normalizing to the low double-digit range.
• In this context, the stock’s steep valuation multiples (78.5x 1-year forward P/E) look increasingly difficult to justify; as growth expectations are recalibrated a valuation de-rating seems likely.

• With oil prices expected to remain under pressure from a persistent supply glut, investors and dealmakers are turning cautious and prioritising capital efficiency.
• Private equity-led consolidation in midstream signals growing demand for yield resilience amid falling oil prices and market uncertainty.
• MLPX ETF inflows in 2025 highlight investor preference for dependable midstream returns over cyclical energy exposure.

• MSIL decisively shifted to UVs, reaching a 41% segment share in FY25 via key launches (Brezza, Grand Vitara), fundamentally reversing market share losses to become a full-range powerhouse.
• The revised GST flat rate of 40% for SUVs reduces prices and boosts affordability, creating a powerful dual catalyst with the festive season for significant volume and market share growth.
• Strong exports grew by 17.5%, establishing MSIL as the parent’s global EV hub and mitigating local risks, while high EBITDA margins (~13%) ensure profitable and sustainable growth.

• With a 37.3% rally in Shanghai Electric Group Company (2727 HK)‘s share price in the last 5 trading days, it is poised for a correction, which is a long-term opportunity. 
• Key positive drivers include its Fanuc Robots earnings, progress in China’s nuclear fusion project, solid new order momentum, and speculation on asset acquisition.
• PER valuations are not cheap, but this is understandable due to the company’s transition. However, its 1.5x P/B multiple is not outrageously expensive relative to peers.

• Dominant Market Leader with Unmatched Scale: Vinhomes is Vietnam’s largest real estate developer, possessing a land bank significantly larger than its closest competitors, which underpins a long-term growth runway. Its integrated township model, supported by the Vingroup ecosystem (schools, hospitals, retail), creates a distinct competitive advantage and enhances property values.
• Robust Project Pipeline Driving Future Growth: The company has a clear development trajectory with several large-scale mega-projects in the pipeline, such as Vinhomes Vu Yen, Co Loa, and Wonder Park. These projects are expected to be key earnings drivers in the coming years, capitalizing on Vietnam’s urbanization trend and the rising middle class.
• Group-Related Risks and Market Sentiment Overhang: The company’s valuation is significantly impacted by its relationship with the parent company, Vingroup (VIC). Concerns regarding VIC’s financial health, potential liquidity challenges, and the use of VHM shares as collateral for group borrowings have created a persistent overhang on the stock price, overshadowing its strong operational performance.

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