In today’s briefing:
- Japan Post Bank: From Stagnation to Opportunity
- CMOC Group Limited (HKEX: 3993) – High-Growth, Low-Cost Producer Positioned for Re-Rating
- Intel @ BofA Securities 2025 Global Technology Conference
- Shriram Pistons & Rings Ltd: Powering Forward with Precision and Purpose
- NAVA Limited (NAVA.IN): Diversified Growth, Strong Financials, and Strategic Global Expansion
- Gujarat Fluorochemicals Limited: Robust Core Business Performance and EV Ramp-Up
- Kilburn Engineering: Record Performance and Robust Growth Outlook
- Time Technoplast Limited: Value-Added Products and Composites Drive Strong Performance
- AVIC (9554 JP) – System in Place for Rapid In-House Launch of Live Commerce Business
- Chow Tai Fook (1929 HK) – H2FY25 Outlook, Cost Management & Pricing Optimization to Drive Growth.
Japan Post Bank: From Stagnation to Opportunity
- Non-Controversial changes in asset allocation will provide a big boost to earnings.
- Demand problems brewing in the JGB market may provide the catalyst
- The path is clear to enter new businesses after parent lowers stake below 50%
CMOC Group Limited (HKEX: 3993) – High-Growth, Low-Cost Producer Positioned for Re-Rating
- EBITDA more than doubled (25% CAGR) over 3 years, with copper and cobalt output up ~3.5x and ~5.7x on ramp-up of TFM and KFM.
- $4.3 bn invested in DRC; low-cost leaching drives margins; gold entry via Cangrejos adds diversification and long-term optionality.
- Strong cash flows, growth pipeline, and ~4x EV/EBITDA valuation position CMOC for sustained upside amid rising energy transition metal demand.
Intel @ BofA Securities 2025 Global Technology Conference
- Intel Products CEO Michelle Johnston Holthaus reveals that the company is now also including Samsung as a second foundry option
- The practice of Intel offering OEM incentives appears to be coming to the end of its unnatural life as LBT sets the tone. Great news for AMD I would think.
- Further investment in A14 capacity will now be contingent on having customers committing to taking up that capacity. No more build it and they will come a la Mr. Gelsinger.
Shriram Pistons & Rings Ltd: Powering Forward with Precision and Purpose
- The company is expanding into EV motors, precision plastics, and exports to over 45 countries worldwide
- SPRL reported Rs 36,612 million total income in FY25, with 15.3% YoY growth and a 22.8% EBITDA margin
- SPRL balances legacy ICE products with new EV, plastics, and non-auto segments for resilient growth
NAVA Limited (NAVA.IN): Diversified Growth, Strong Financials, and Strategic Global Expansion
- NAVA’s net profit doubled from ₹536 Cr in FY23 to ₹1,091 Cr in FY25, driven by strong power and mining earnings.
- Maamba Phase II will double Zambian power capacity to 600 MW by FY27 with $400M investment. Zambia agri projects in avocado and sugar aim for diversified, steady revenue from FY27.
- NAVA has become debt-free, strengthening its balance sheet. Improved credit ratings reflect steady profits, healthy cash flows, and low debt risk.
Gujarat Fluorochemicals Limited: Robust Core Business Performance and EV Ramp-Up
- Gujarat Fluorochemicals (FLUOROCH IN) reported strong consolidated Q4FY25 financials, driven by fluoropolymers, with significant PAT growth and reduced net debt.
- This indicates sustained momentum in core fluoropolymers, potential for significant revenue contribution from the new EV business in the coming years, and an improved balance sheet supporting future investments.
- Capex of INR 1,600 crs in FY26 funded via external accruals will expand EV and fluoropolymer capacities, enabling long-term growth across energy, mobility, and specialty segments.
Kilburn Engineering: Record Performance and Robust Growth Outlook
- Kilburn Engineering (KEL IN) achieved highest-ever standalone/consolidated revenue and EBITDA, completed two strategic acquisitions (ME Energy, Monga Strayfield), and secured record orders, particularly entering the Nuclear sector.
- The performance validates the company’s strategy of diversification and inorganic growth, providing strong visibility for future revenue with 50% growth target for FY26 .
- The strong execution, robust order book, and confident management guidance reinforce a positive outlook, suggesting significant growth potential building on recent strategic moves.
Time Technoplast Limited: Value-Added Products and Composites Drive Strong Performance
- Strong FY25 financial performance driven by volume growth outpacing revenue, significant PAT increase, and improved margins, particularly from higher-growth value-added and composite product segments.
- The strategic focus on higher-margin value-added products, especially composites, is enhancing profitability (margins, ROCE) and positioning the company for future growth in key sectors like clean energy and sustainability.
- The consistent execution on strategic targets (ROCE, debt reduction, composite growth) strengthens conviction in the management’s ability to deliver and capitalize on emerging opportunities, despite some project timeline shifts.
AVIC (9554 JP) – System in Place for Rapid In-House Launch of Live Commerce Business
- Over the past six months, AViC’s share price has undergone a major re-rate.
- Its closing price on May 16, 2025, the day after Q2 FY2025/9 results announcement, stood at JPY 1,825, up 67.6% from the closing price of JPY 1,089 on November 14, 2024, when it announced FY2024/9 results.
- Based on the projected EPS of JPY 73.59 for FY2025/9, the Company’s share looks to be trading at a premium with a forward P/E ratio of 24.8x.
Chow Tai Fook (1929 HK) – H2FY25 Outlook, Cost Management & Pricing Optimization to Drive Growth.
- Despite short-term demand headwinds, Chow Tai Fook Jewellery (1929 HK) remains well-positioned for structural growth via product premiumization(e.g.,CTF Rouge,Palace Museum), omni-channel scaling, and selective global expansion in culturally aligned markets.
- Company continues to defend margins through product mix optimization (fixed-price gold up to 25.6% of gold RSV),disciplined SG&A control, and aggressive retail network rationalization.
- Trading at ~26xx TTM P/E, it commands premium to peers, backed by industry-leading ROE (~25%),brand strength,and high dividend payout (~79%), though clear earnings rebound remains key to justify the multiple.
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