In today’s briefing:
- HK-Listed Apparel & Footwear Screener December 2025: Top Picks For FY26
- Mitsubishi UFJ Financial (MUFG) (8306 JP) | Loading up on India
- Aisin(7259 JP)-Marching Towards Nirvana: Product Portfolio Revamp, Zero Cross-Holdings & ROIC Uplift
- Hindalco: 44% Upside as Earnings De-Link from LME Volatility
- The Beat Ideas on GE Vernova T&D: Khavda HVDC Win Powers the Next Growth Phase
- The Beat Ideas: SBI Cards – Is the Worst Now Behind Us?
- 2026 High-Conviction: JOYY US: ZERO EV, Growth & Yield – Poised For Re-Rating (Deep-Value Smallcap)
- Quantum Computing Buys Luminar: A Game-Changing Move or a High-Risk Play?
- Mandarin Oriental International Limited Privatization Report
- Blue Owl Exit Puts Oracle AI Data Center Funding Strategy in Question!
HK-Listed Apparel & Footwear Screener December 2025: Top Picks For FY26
- We continue to have JNBY Design Ltd (3306 HK) as a top pick among our names for its robust growth in FY26, an undemanding 10x PE, and 7% dividend yield.
- For high dividends, we have written extensively on Nameson Holdings (1982 HK), currently trading at a 12% yield, and are exploring Texwinca Holdings (321 HK) (at ~10% yield).
- Finally, for those interested in net-net situations, we have Fountain Set Hldgs (420 HK) trading at a 61% discount to NCAV(net current asset value) with an 8% dividend yield.
Mitsubishi UFJ Financial (MUFG) (8306 JP) | Loading up on India
- Mitsubishi UFJ Financial (MUFG) (8306 JP) acquires 20% of Shriram Finance, gaining capital-light exposure to India’s retail and MSME credit via a secured, high-RoA franchise with deep rural distribution.
- Primary capital infusion strengthens Shriram Finance (SHFL IN)’s balance sheet, supports mid-teens AUM growth, margin expansion and a medium-term structural RoE of ~17–18%.
- Earnings impact is modest initially under equity accounting, but compounds over time through growth, co-lending optionality and potential funding-cost compression.
Aisin(7259 JP)-Marching Towards Nirvana: Product Portfolio Revamp, Zero Cross-Holdings & ROIC Uplift
- Aisin (7259 JP) has been taking series of measures to enhance shareholder returns through product portfolio revamp, moving towards reduced cross holdings and balance sheet optimization.
- In this insight, we discuss the status of this journey towards better corporate governance as we term it = “Marching towards Nirvana”
- We finally discuss our outlook, valuation and key risks towards attaining the stated goals of the company.
Hindalco: 44% Upside as Earnings De-Link from LME Volatility
- Earnings decouple from LME as Novelis delivers contracted conversion margins and Bay Minette adds multi-year EBITDA.
- Downstream India compounds via EV, aerospace and façades with 4× EBITDA targeted by FY30.
- Valuation re-rates toward industrial multiples, driving ~44% upside over 24–30 months.
The Beat Ideas on GE Vernova T&D: Khavda HVDC Win Powers the Next Growth Phase
- GE Vernova T&D has secured a landmark HVDC-VSC order for the Khavda-South project, materially improving multi-year revenue visibility.
- The win reinforces GVT&D’s positioning in India’s grid transformation, strengthens backlog to record levels, and supports sustained earnings growth through FY28.
- With HVDC, grid digitalization, and capex acceleration aligned, GVT&D remains a high-quality transmission compounder with incremental upside optionality.
The Beat Ideas: SBI Cards – Is the Worst Now Behind Us?
- Q2FY26 witnessed sequential NIM stability at 11.2%, but the adverse product mix shift toward transactors, coupled with higher operating costs, led to a lower pre-provision operating profit and PAT.
- The company is actively sacrificing immediate yield for better asset quality and volume growth through RuPay/UPI integration, addressing key regulatory and positioning itself to capture theTier II-III consumption base.
- If the stabilization of funding costs and the anticipated moderation of credit costs materialise, the premium valuation may be justified by renewed focus on higher-yielding revolving assets.
2026 High-Conviction: JOYY US: ZERO EV, Growth & Yield – Poised For Re-Rating (Deep-Value Smallcap)
- Net cash of ~$3.3bn equals market cap; ~$300mn of recurring FCFE funds ~10% shareholder yield via dividends and buybacks, while Ad-Tech provides incremental growth optionality.
- Management is proactively engaging investors, returning capital, and building Ad-Tech scale, creating multiple levers for perception shift beyond legacy live-streaming framing with a global positioning.
- This is a classic deep-value smallcap bet with Valuation asymmetry: Base-case valuation implies ~50% upside including cash; bull-case capitalisation of cash flows and Ad-Tech optionality supports ~100% upside.
Quantum Computing Buys Luminar: A Game-Changing Move or a High-Risk Play?
- Quantum Computing Inc. has made headlines with its bold $110 million all-cash offer to acquire Luminar Semiconductor, a deal surfacing amid Luminar Technologies’ bankruptcy-driven divestiture.
- This acquisition comes at a pivotal time for Quantum Computing, which recently secured over $1.5 billion in capital and strengthened its strategic roadmap through the buildout of Fab 1—a foundry for thin-film lithium niobate (TFLN) photonic chips.
- The proposed acquisition is not just a financial transaction; it is a potential catalyst to integrate core photonic IP, engineers, and manufacturing capabilities.
Mandarin Oriental International Limited Privatization Report
- Mandarin Oriental is no longer a “normal” listed equity.
- With the privatization scheme announced and shareholder-approved, it should be analyzed as a capped-upside, time-bound deal instrument until delisting, not as a multi-year compounding story.
- The report therefore uses the offer value as the primary reference point and focuses on the few items that can still move outcomes before completion: conditions, timing, cash leakage, and any operational downside that could change sentiment or process risk.
Blue Owl Exit Puts Oracle AI Data Center Funding Strategy in Question!
- Oracle’s AI ambitions may have been too big, too fast.
- The company’s sprawling plans to build a national footprint of AI data centers suffered a high-profile blow this week after reports surfaced that Blue Owl Capital walked away from a major funding partnership.
- While Oracle insists Blue Owl was simply outbid for the Michigan data center project, the market response was immediate: shares slid 4.4% and bond prices declined.
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