Daily Brief Equity Bottom-Up: LG Corp: NAV Analysis Suggests a 29% Upside and more

• Our updated NAV valuation of LG Corp suggests implied market cap of 17.2 trillion won or target price of 111,605 won per share, representing 29.3% higher than current levels.
• LG Corp’s investment stakes in LG Chem and LG Electronics are worth 15.7 trillion won representing 119% of LG Corp’s entire market cap.
• Lower taxes on dividends could accelerate the capital allocation to companies with higher dividend yields/payouts such as LG Corp.

• Shiseido’s Q3 revenue rose 4.6% YoY to ¥224bn, marking its first growth in three quarters, though full-year sales guidance was cut 3%.
• Profitability remained pressured by tariffs and Drunk Elephant weakness; product margins fell 340bps YoY, but SG&A improvements limited overall margin decline to 80bps.
• Management maintained core OP profit guidance and continued executing structural reforms, achieving ¥21bn cost savings YTD, with deeper efficiency cuts planned through 2026.

• Mitsui Chemicals is slashing exposure to commodity chemicals and ramping up high-margin specialty films and resins—setting the stage for its RoE to soar from 5% to over 13%.
• Restructuring is unlocking massive cost savings while driving growth from cutting-edge segments that are poised for double-digit growth and global dominance.
• The stock trades at a deep discount, but could easily command a premium with solid execution, driving the share price to more than double or even treble within 3 years.

• Nvidia Pushes TSMC for More Capacity as AI Chip Demand Surges
• Apple Expands Its Satellite Ambitions for iPhones Beyond Just Emergencies — A Step Towards Disintermediating Telcos?
• Nvidia’s International HQ in Taipei Deal Clears Final Hurdle — Boost for Taiwan 2026E-2027E

• Trough valuations: JFE trades at only US$525/t EV/t and 0.5× P/B, despite stable guidance and improving high-value steel mix.
• Hidden value: 15% JSW Steel stake (~¥500 bn) equals ~45% of JFE’s market cap—cheap India exposure with re-rating potential.
• Upside case: SOTP implies +50–60% equity upside, supported by 4–5% dividend yield and H2 margin recovery.

• Four stock pairs have triggered new mean-reversion trade signals, with price ratios deviating more than two standard deviations from their one-year averages.
• Two of the opportunities involve companies in the same industry and two pairs involve companies in different industries within the same sector.
• Essential for quantitative traders seeking mean-reversion opportunities, outlining opportunities and key risk considerations.

• Sentiment has started to wobble in the AI mega cap trade
• Risk is elevated as bearish divergences  and rolling tops abound
• No top yet signalled in the major US indices –  so what to do in this environment 

• Treasury Wine Estates (TWE AU — US$3.0 billion) is one of the world’s largest wine producers globally. And it’s one of the very few large companies in Australia trading at a reasonable valuation multiple.

• It started as the wine division of brewery giant Forster’s Group. From the 1990s onwards, Foster’s acquired vineyards and brands such as Penfolds, Lindeman’s and Beringer.

• But throughout the 2000s, this wine division underperformed, draining cash from Foster’s highly profitable beer business. So in 2011, it was eventually spun off into a separately listed entity called Treasury Wine Estates (TWE).

• We turn cautious on our sole positive Thai recommendation Bangkok Bank, downgrading it to neutral from buy, despite its very attractive value attributes
• We believe that Thailand’s unilateral suspension of the peace accord in the Thailand-Cambodia conflict is likely to be negative for sentiment towards Thai equities, including banks, in the short term
• Consequently, in the worsening investor climate, we do not expect Bangkok Bank shares to benefit from a re-rating over the short term

• Elementos is strategically positioned to capitalize on a forecast tin supply deficit, with two world-class projects in stable jurisdictions: the development-ready Oropesa project in Spain and the exploration-focused Cleveland project in Australia.
• The recently completed Definitive Feasibility Study (DFS) for the Oropesa project demonstrates robust economics, underpinning a clear development pathway. The company is also pursuing a mine-to-metal strategy in Europe to capture additional value.
• Exploration at the Cleveland project continues to uncover significant mineralization of not only tin and copper but also critical minerals like tungsten and fluorite, offering substantial long-term upside potential.

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