Daily Brief Equity Bottom-Up: Led by DRAMs and more

• Micron delivered a blowout Q4, with $11.3B revenue and $3.03 EPS, led by DRAM’s 27% QoQ growth and an HBM3E run-rate nearing $8B.
• Data centre accounted for 56% of FY2025 sales, driven by LPDDR5 shipments for Nvidia’s GB chips and early HBM4 sampling.
• Management sees 2026 as a tight DRAM supply environment by design, with slower node transitions and deliberate capacity discipline supporting pricing.

• Axon Enterprise, best known for its Tasers, body-worn cameras, and cloud-based evidence management tools, has made headlines yet again.
• The company announced it will acquire Prepared, a U.S.-based emergency communications platform that integrates 911 call data across audio, video, GPS, text, and translation tools into one unified interface.
• Though Axon has not disclosed the official price, media outlets suggest a range of $800 million to $900 million.

• Spin-Off unlocks scale: Sony Financial (~¥23 tn assets) carved out from Sony, with ~¥250 bn market cap and ~¥200 bn free float.
• Balance-Sheet heavy, rate-sensitive: Core life insurance business (~80–85% of profits) supported by strong solvency (ESR 189%).
• Catalysts: Forced selling post-listing, earnings delivery, 40–50% payout policy, and likely TOPIX inclusion within 6–12 months.

• Taiwan Semiconductor (TSMC) – ADR (TSM US) 2Q25 growth likely reaches ~39% YoY with upside risk if 4Q25 outperforms.  
• Apple (AAPL US) remains the anchor customer driving N2 ramp in 2026.
• Since 2nm technology will be widely adopted starting in 2026, revenue growth is projected to be around 25% YoY.  

• Pacific Textiles is a major knitted fabric manufacturer facing significant headwinds, evidenced by a multi-year decline in revenue and profitability. The company’s performance is closely tied to the cyclical nature of the global apparel market and the inventory management of its key customers.
• The company maintains a high dividend yield, which may appeal to income-focused investors. However, the sustainability of this payout is questionable given the sharp decline in net income and free cash flow, and the dividend per share has already been reduced.
• Strategically, the company is shifting production capacity to its Vietnam facilities to capitalize on lower costs and changing trade dynamics. This move is crucial for future competitiveness but also entails execution risk and underutilization of its China-based assets.

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• Info-Tech Systems is a rapidly growing, profitable provider of cloud-based Human Resource Management (HRM) and accounting software, primarily targeting Small and Medium Enterprises (SMEs) in Southeast Asia.
• The company’s growth is underpinned by the strong digitalization trend among SMEs, supported by government initiatives. Its strategy is focused on geographic expansion from its core Singapore market into Malaysia, Hong Kong, and India.
• While the company boasts a high-margin, recurring revenue model and a debt-free balance sheet, it faces risks from high market concentration in Singapore and increasing competition from larger, established players like Zoho and SAP.

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• Global oil majors are slashing jobs and investments as weak demand, OPEC+ supply hikes, and rising costs drive the sharpest industry retrenchment since the 2020 collapse.
• U.S. producers face added strain from tariffs, cost inflation, and consolidation, forcing capex cuts, layoffs, and highlighting the slowdown of shale-driven growth that once powered record output.
• ExxonMobil emerges strongest among peers, supported by low debt, robust free cash flow, advantaged low-cost assets, and global diversification, giving it unmatched resilience in a prolonged low-price environment.

• Zijin Mining is a rapidly growing global mining powerhouse, having recently become the world’s third-largest mining company by market capitalization, driven by surging gold and copper prices.
• The company exhibits a strong growth trajectory, underpinned by a successful strategy of aggressive international acquisitions and superior operational capabilities that enable faster mine development.
• Despite robust financial performance and a positive commodity outlook, the company’s valuation appears stretched, with high short interest suggesting significant market skepticism.

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• Nuvama Wealth is capitalizing on India’s burgeoning financialization trend, with its re-branding and strategic focus on affluent and ultra-high-net-worth individuals (UHNIs) driving strong growth in client assets and profitability.
• As India’s wealth management market matures and faces increasing regulatory scrutiny, Nuvama’s differentiated model position it uniquely to capture a larger share of the shifting landscape.
• Nuvama’s integrated platform and execution-focused management team are navigating industry-wide challenges, from tightening regulatory framework to sustain a growth trajectory that is outperforming peers and creating long-term value.

• Anand Rathi Share and Stock Brokers, a three-decade-old full-service brokerage house, is set to go public with a fresh issue to fund its working capital and expansion.
• The offering provides a window into a mature, brand-led brokerage with an industry-leading Average Revenue per Client (ARPC) and a strong presence across Tier I, II, and III cities.
• The company’s structural strengths, including its Margin Trading Facility (MTF) business and client vintage, position it for sustained growth in India’s evolving capital markets.