In today’s briefing:
- Kawasaki Heavy (7012 JP): Recovery Done, Eyes on Hydrogen, Aerospace, and Margin Upside
- Taiwan Tech Weekly: TSMC Preparing 5x 2nm Ramp into 2027; Altman ‘Jokes’ About Buying 100x More GPUs
- Sona Comstar’s China JV: Tapping into the World’s Largest EV Market
- Chow Tai Fook(1929 HK) – What’s Clicking in Q1FY26? Brand Revamp, Cost Focus and SSS Recovery
- UCO Bank (UCO IN) Vs. IOB (IOB IN): Catch-Up Potential
- Woolworths Group Limited: Initiation of Coverage- Inside the Bold Push to Reinvent Grocery with W Living and Private Labels!
- NXP 2Q25: Slowly Getting Out of the Hole
- WiseTech Global: Initiation of Coverage: Can The Ramp-Up of New Products & Innovations Up Their Game?
- [Earnings Preview] Chevron Faces the Heat as Earnings Projected to Slide and Traders Turn Defensive
- [Earnings Preview] Exxon Braces for Weakest Quarter Since 2021 But Markets Bet on a Surprise
Kawasaki Heavy (7012 JP): Recovery Done, Eyes on Hydrogen, Aerospace, and Margin Upside
- Past Performance: KHI has rebounded from FY21 losses to record-high revenues and profits in FY25, driven by aerospace recovery and energy systems strength.
- Future Growth: Orderbook visibility of ~¥3 trillion supports 5–6% annual growth, led by hydrogen, commercial engines, and automation.
- Valuations: At 7.6x EV/EBITDA and 14x PE (NTM), KHI trades at a discount to peers like MHI and Komatsu, reflecting lower ROE and execution risk on long-cycle capex bets.
Taiwan Tech Weekly: TSMC Preparing 5x 2nm Ramp into 2027; Altman ‘Jokes’ About Buying 100x More GPUs
- TSMC’s Most Advanced Node — 5x Growth to 200K Wafers a Month? Upcoming 2nm Node Capacity Ramp Could Be Much Bigger Than Many Think
- OpenAI’s Sam Altman ‘Jokes’ About Owning US$3 Trillion Worth of GPUs One Day…
- AI PC Delay — Nvidia-MediaTek Push AI PC Chip Launch to 2026
Sona Comstar’s China JV: Tapping into the World’s Largest EV Market
- On July 20, 2025, Sona Blw Precision Forgings Lt (SONACOMS IN) announced a $20 million joint venture with China’s JNT to enter the world’s largest EV market.
- The move aims to capture growth in China’s dominant EV market, aligning with the company’s new strategy to expand into eastern markets
- An EV slowdown is expected in FY26 while the China JV and railway business, despite driving future growth from FY27 onwards, are expected to lower margins.
Chow Tai Fook(1929 HK) – What’s Clicking in Q1FY26? Brand Revamp, Cost Focus and SSS Recovery
- Chow Tai Fook Jewellery (1929 HK) saw lowest degrowth in retail sales value(RSV) in Q1FY26 among last few quarters.
- Same-Store sales growth showed a clear sequential improvement across key regions. Mainland China self-operated stores saw the decline narrow sharply.
- Driven by store optimization and brand transformation, earnings quality should sustain. At 16.9x P/E valuation on FY26e EPS, we believe investors will increasingly view CTF as a long-term structural winner.
UCO Bank (UCO IN) Vs. IOB (IOB IN): Catch-Up Potential
- Context: The Indian Overseas Bank (IOB IN) vs. UCO Bank (UCO IN) Price-Ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights: Statistical mean reversion suggests short-term outperformance of UCO Bank (UCO IN), also supported by more attractive valuations.
- Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.
Woolworths Group Limited: Initiation of Coverage- Inside the Bold Push to Reinvent Grocery with W Living and Private Labels!
- Woolworths Group’s half-year financial performance for FY 2025 exhibits a mix of achievements and challenges, emphasizing the competitive and dynamic retail landscape.
- The company’s diverse portfolio, including Australian Food, New Zealand Food, BIG W, and other segments, reflected varied growth patterns influenced by external and internal factors.
- Starting with the positives, Woolworths Group achieved a 3.7% increase in group sales, reaching $35.9 billion, with eCommerce sales showcasing robust growth of 20%.
NXP 2Q25: Slowly Getting Out of the Hole
- Bold statement by Management: early stage of cyclical recovery, new upcycle beginning. 2Q result and 3Q guidance show a smaller pace of YoY decline, converging slowly to 0.
- Other than an increasing order book, Management not forthcoming on details. In Automotive NXP has outperformed its peers during this latest downcycle with a smaller pace of decline.
- Stock valuations at 20x 2025 EPS, 16.8x 2026 EPS, which are almost +1 standard deviation above average PEx. No room for error here.
WiseTech Global: Initiation of Coverage: Can The Ramp-Up of New Products & Innovations Up Their Game?
- WiseTech Global Limited, a developer of cloud-based software solutions for the international and domestic logistics industries, recently released its first half of 2025 financial results.
- The company reported revenue of $381 million, marking a 17% increase compared to the same period in 2024, with an organic revenue growth rate of 15%.
- CargoWise, their flagship logistics platform, exhibited strong performance with organic revenue growth of 20% and recurring revenue contributing 99% of total CargoWise revenue.
[Earnings Preview] Chevron Faces the Heat as Earnings Projected to Slide and Traders Turn Defensive
- Chevron’s Q2 2025 revenue is expected to drop 8% QoQ and 14.5% YoY. Its EPS is projected to drop 21.6% QoQ and 32.9% YoY.
- Chevron’s Q2 earnings are expected to fall to their lowest level since 2021, primarily due to weak crude oil and natural gas prices.
- Bearish sentiment dominates options positioning, with elevated put-call ratios and heavy put open interest near key support levels.
[Earnings Preview] Exxon Braces for Weakest Quarter Since 2021 But Markets Bet on a Surprise
- Exxon’s Q2 2025 revenue is expected to drop 3% QoQ and 13.4% YoY. Its EPS is projected to drop 11.4% QoQ and 27.1% YoY.
- Exxon’s Q2 earnings are expected to hit their lowest since Q3 2021, driven by weak crude and gas prices despite stronger refining margins.
- Options market positioning shows a bullish bias, suggesting traders are betting on a potential upside surprise.
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