In today’s briefing:
- Gensol Engineering Scandal: Our AI System Saw This Coming
- Anicom (8715 JP)
- Seasonal Play: FDC Ltd- Electral’s Summer Surge and Expanding into Growing Categories
- SDA: SunCar reports 2024 financial and operating results which showed strong revenue and adjusted EBITDA growth. The company continues to secure multiple business agreements and partnerships.
- WRKR Ltd – Building the platform for strong revenue growth
- Mediatek 1Q25 6% Beat, Growth Accelerating in 2Q, Large Revenue Opportunity for Data Center ASIC
- Adani Energy Solutions Ltd. Q4 FY25 Update: Robust Growth Driven by T&D Expansion
- MediaTek 1Q25 Earnings: AI Momentum Drives Strength, But 2H Visibility Remains Murky Due to Tariffs
- Sumitomo Pharma (4506 JP): Guidance Revised Upward for FY25 Driven by North America
- Adi Sarana Armada (ASSA IJ) – Indonesia’s Leading Logistics and Mobility Ecosystem
Gensol Engineering Scandal: Our AI System Saw This Coming
- Indian regulator barred Gensol Engineering’s founders for alleged fund diversion, causing a 90% stock plunge
- Unusual growth and poor governance were flagged in Gensol’s accounts by Transparently’s AI system
- Transparently’s “F” risk rating would have likely steered investors away from Gensol.
Anicom (8715 JP)
- Japanese pet insurance company with 40-50% market share thanks to its OTC settlement system and a network of pet shop/veterinary clinic partners
- The stock trades at around 13x current-year earnings, a modest multiple given the secular growth that’s ahead of it. The pet/human population ratio is low. Pet insurance is still unusual.
- Well-Regarded investor Hikari Tsushin just took a 5.2% position in the company, highlighting the value in the company at the current 1.5x book.
Seasonal Play: FDC Ltd- Electral’s Summer Surge and Expanding into Growing Categories
- FDC Limited is a pioneer in India’s pharmaceutical landscape, especially in Oral Rehydration Salts (ORS) and specialized formulations.
- The company’s flagship brand, Electral, continues to be a major revenue contributor, despite margin pressures from regulatory price caps.
- FDC’s strategic capex in ophthalmic, ear, and nasal drops business, coupled with its domestic and international presence, positions it strongly for sustained growth.
SDA: SunCar reports 2024 financial and operating results which showed strong revenue and adjusted EBITDA growth. The company continues to secure multiple business agreements and partnerships.
- SunCar Technology Group ((NASDAQ: SDA) is a leading Chinese cloud-based provider of digital enterprise auto services and auto eInsurance services in China.
- The company offers one-stop, fully digital, on-demand automotive service systems to help enterprise clients build up their customer base and serve their end customers (auto owners).
- The company has grown revenues rapidly in recent years, which we expect to continue in the near-to-midterm.
WRKR Ltd – Building the platform for strong revenue growth
- Wrkr Ltd (ASX:WRK) offers compliance solutions for Australian superannuation contributions and payroll including member onboarding, super payments, messaging and employee validation.
- WRK’s Q3 FY25 activities report demonstrates a continued balance of cost management (up just 3% against Q3 FY24) against lumpy cash receipts (down 6% against Q3 FY24 but up 39% on Q2 FY25) amidst continued milestone/project work, which should drive revenue in FY26.
- This quarter saw the receipt of a $328k R&D tax credit but also a record capitalised IP spend of $985k as new product development and systems integration continues.
Mediatek 1Q25 6% Beat, Growth Accelerating in 2Q, Large Revenue Opportunity for Data Center ASIC
- Mediatek beats in 1Q, good guidance for 2Q, but close to Consensus. Several positives in 2025: flagship smartphone gains, smartphone AI upgrades, strong WiFi and Connectivity growth, progress in Auto.
- How large is the “sizable revenue” opportunity of data center custom ASICs from 2026? Management sounds increasingly positive / confident. The stock valuations reflect this.
- The stock trades at 18.5x 2025 EPS, 15.5x 2026 EPS, not extravagant but on the high-end. If you have the stock, keep it. If you don’t, TSMC looks more interesting.
Adani Energy Solutions Ltd. Q4 FY25 Update: Robust Growth Driven by T&D Expansion
- Adani Energy Solutions (ADANIT IN)’s Q4 FY25 PAT jumped 87% YoY to INR 714 crore, driven by strong transmission execution and distribution growth.
- The company’s record order book of INR 59,936 crore and aggressive smart metering ramp-up signal sustained growth ahead.
- AESL is strengthening its position across transmission, distribution, and metering, reinforcing its multi-year growth visibility.
MediaTek 1Q25 Earnings: AI Momentum Drives Strength, But 2H Visibility Remains Murky Due to Tariffs
- MediaTek beat 1Q25 EPS expectations as Smart Edge and mobile segments delivered strong sequential growth; flagship SoC traction supports improved ASP mix.
- AI remains central to strategy: NVIDIA partnership progressing — NT$1bn AI ASIC revenue targeted for 2026.
- Tariff-Driven macro caution clouds 2H outlook, but we maintain Structural Long view — AI, auto, and premium mobile SoCs drive long-term opportunity.
Sumitomo Pharma (4506 JP): Guidance Revised Upward for FY25 Driven by North America
- Sumitomo Pharma (4506 JP) revised revenue guidance for FY25 to ¥399B from previous ¥381B. New guidance represents 27% YoY growth.
- This comes on the back of higher than expected sales in North American segment, which contributed 61% sales in 9MFY25.
- Operating profit guidance have been revised to ¥43.2B from ¥30B on controlled cost and higher sales.
Adi Sarana Armada (ASSA IJ) – Indonesia’s Leading Logistics and Mobility Ecosystem
- Adi Sarana Armada has seen its end-to-end logistics ecosystem under Cargoshare take over as its biggest revenue driver, with car rentals, vehicle auction, and used cars also showing solid growth.
- All divisions booked revenue growth, with the auction business seeing the strongest performance, but the logistics saw the biggest turnaround, booking a profit in FY2024 versus a loss in FY2023.
- Cargoshare is increasingly deploying solutions-based logistics, especially for FMCG companies, which are increasingly outsourcing logistics. ASSA’s mobility ecosystem continues to thrive through synergies, with captive car supply from ASSA Rent.
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