Daily Brief Equity Bottom-Up: MediaTek (2454.TT): 4Q25 GM Eases on Mix; 2025 Record Revenue; 2026 AI Upswing Begins and more

• 4Q25 Guidance: Revenue is NT$142.1 – 150.1 bn (+0 – 6% QoQ, +3 – 9% YoY); Gross margin is 46% ± 1.5ppt; Opex ratio is 31% ± 2ppt.
• Cloud ASIC TAM: Raised from US$40bn → ≥ US$50bn by 2028; MediaTek targeting ≥ 10–15% share; Gross Margin: 4Q dip from mix; 2026 to benefit from repricing + high-value allocation
• MediaTek continues to execute on a dual-engine AI strategy. Despite near-term margin pressure from mix and FX, the company is building a foundation for sustainable profit growth.

• Company incurred a loss of 90 bn Rupiah in 3rq quarter or loss of 21.6 Rupiah per share. 
• Even though sales have declined for the first 9 months – inventory and receivables have increased indicating stress in working capital. 
• GP Margin is flat, selling expense as %ge of sales have increased as we think company is pushing economy products to compete with local players and maintain market share

• Wendt India completed a transformative acquisition of global “Wendt” brand IP, while Wendt GmbH (3M) initiated exit from the JV, consolidating CUMI and public ownership.
• Autonomous brand/IP rights unshackle Wendt from legacy risk while maintaining technical lead. A diversified, high technology industrial revenue stream, debt-free balance sheet, and high cash conversion reinforce the investment case.
• Wendt India is among the highest quality plays in Indian manufacturing: sticky client relationships, sectoral diversity, and recurring cash flows balance mid-term volatility in autos/steel.

• Establishment Labs is a medical technology company poised for significant growth following the recent US FDA approval for its flagship Motiva® breast implants, granting access to the world’s largest market for aesthetic procedures.
• The company’s key competitive advantage lies in its focus on safety and innovation, with its proprietary SmoothSilk® surface and ergonomic implant designs demonstrating low complication rates in extensive clinical studies, potentially disrupting a market dominated by long-standing incumbents.
• Despite strong revenue growth, the company has a history of significant net losses and negative cash flow. The successful commercialization in the US and a clear path to profitability are critical for future stock performance.

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• 88 Energy is a high-risk, high-reward oil and gas exploration company with a primary focus on large-scale, early-stage projects in the politically stable and well-developed hydrocarbon province of Alaska’s North Slope.
• The company’s strategy centers on identifying and de-risking significant prospective resources and then farming out interests to larger partners to fund capital-intensive drilling and development, thereby minimizing shareholder dilution and financial risk.
• Recent divestment from production assets in Texas has sharpened the company’s focus on its core Alaskan exploration portfolio (Projects Phoenix and Leonis) and a new frontier opportunity in Namibia, positioning it as a pure-play exploration entity with significant potential upside contingent on drilling success.

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International Public Partnerships (INPP) had a strong first half of 2025, maintaining solid financial and operational performance while advancing portfolio optimisation and disciplined capital allocation. Alongside accretive share buybacks, the company’s investment in Sizewell C, targeting low-teens returns, enhances both inflation linkage and portfolio longevity. At the current share price, investors can access double-digit net returns from a low-risk, inflation-protected portfolio offering a cash yield above 6%, with dividend growth underpinned for over 20 years.

• Nextracker’s second quarter fiscal year 2026 results reflect a strong performance marked by substantial revenue growth, strategic partnerships, and expansion of their technology platform.
• The company posted a 42% year-over-year revenue increase to $905 million and a 29% rise in adjusted EBITDA to $224 million.
• For the first half of the fiscal year, revenue reached $1.77 billion, which indicates a 31% increase compared to the previous year, setting a new record for the company.

• CGN Mining is uniquely positioned as the sole overseas uranium resources development and trading platform for its parent, China General Nuclear Power Corporation (CGN), a major nuclear power operator in the world’s fastest-growing nuclear energy market.
• The company is set to benefit from a strong uranium market uptrend, driven by a global nuclear energy renaissance and supply constraints. A lucrative off-take agreement with its parent company at prices reportedly 50% higher than previous contracts is expected to significantly boost revenues.
• Despite a robust long-term outlook, the company faces risks from geopolitical instability in key uranium-producing regions, potential price volatility, and recent financial pressures from managing high-cost inventory, which has impacted margins.

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• Consolidated ordinary income increased by 19.6% YoY to JPY53.7bn, driven by higher interest and dividend income.
• Hokkoku Bank’s core gross profit grew 23.9% YoY to JPY24.5bn, with a 50.0% rise in core operating profit.
• Non-performing loans at Hokkoku Bank totaled JPY78.3bn, with a 0.25pp YoY decline in percentage of total credit.

• The company reported a 35.7% YoY revenue increase to JPY36.1bn and a 65.4% YoY rise in operating profit.
• Revised full-year FY03/26 forecast: revenue JPY88.5bn, operating profit JPY8.6bn, recurring profit JPY8.7bn, net income JPY5.9bn.
• Engineering segment revenue rose 25.8% YoY, with a 1,201.4% surge in operating profit, OPM at 4.6%.