Daily Brief Equity Bottom-Up: Nidec (6594): Fake Resignations Don’t Count and more

• Shigenobu Nagamori resigned as director but remains honorary chairman, a move we see as insufficient to address Nidec’s recent accounting controversy.
• Meaningful recovery requires both founders’ full retirement, a restructured, more independent board, and a chief risk officer to oversee professional auditing and reforms.
• The company also needs to improve transparency on assets, overhaul incentives toward return on investment, and develop a realistic mid-term plan to improve return on capital.

• November 2025 traffic hit a record ~11.1 million passengers, up ~7.4% YoY (ex-Cebu). Delhi led with 7.3 million passengers and its highest-ever monthly passenger and aircraft movement volumes.
• Traffic has normalized post infrastructure disruptions. Broad-based growth across Delhi and Hyderabad, alongside ~2.7% YoY YTD international growth, improves visibility on aero and non-aero revenue expansion into FY26–27.
• Focus shifts from recovery to sustainable compounding, led by Delhi and Hyderabad, where domestic scale and rising international connectivity act as structural growth multipliers.

• Strong Signals TSMC’s 2nm Node Will Take the Company to New Heights
• Apple Anchors 2nm Volumes — Insulates from Potential AI Capex Slowdown
• TSMC Inexpensive and Resilient to Any Potential AI Capex Slowdown

• Operations did not make any money. other income led to profits.
• Cash per share is MYR 1.11 and the company trades below Cash.
• The company is cautious on outlook due to increasing cost, weak demand , supply chain issue and tariffs.

• New World Development (NWD) is a high-leverage property developer currently trading at a significant discount to its book value, positioning it as a high-risk, high-reward play on the Hong Kong property market and future interest rate cuts.
• The company has experienced severe financial distress, reporting substantial net losses and negative cash flows over the past two years, leading to a sharp dividend cut and a deeply negative growth track record across all key metrics.
• Management is actively pursuing a deleveraging strategy through asset disposals and debt management, such as the recent exchange offer for its perpetual securities. The success of these initiatives is critical to navigating the challenging market and restoring investor confidence.

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• Uni President China (220 HK) appeals to value investors with its stable long-term growth, attractive dividends, and diversified consumer staples portfolio, despite severe near-term sector competition.
• The intense competition plaguing China’s food delivery platforms and F&B sector have impacted investor sentiment and valuations. Expect stock rebound as the dust settles.
• Uni-President’s brand loyalty and innovation capabilities should help sustain revenue and profit growth, enabling the company to weather near-term pricing and margin pressures.

• Zimplats Holdings is a major platinum group metals (PGM) producer, strategically positioned on Zimbabwe’s Great Dyke, one of the world’s most significant PGM deposits. The company’s operations are characterized by shallow, mechanized, and low-cost mining methods, providing a competitive advantage.
• The company is currently navigating a challenging period of depressed PGM prices, which has impacted profitability and led to cost-cutting measures. However, Zimplats is simultaneously implementing a substantial US$1.8 billion expansion strategy aimed at developing new mines, expanding its smelter, and investing in sustainable projects like a solar power plant to secure long-term growth.
• Operating in Zimbabwe presents a unique set of risks and opportunities. While the country offers a rich resource base, the operating environment is subject to regulatory changes, including foreign ownership laws and currency controls, which can impact investor confidence and operational stability.

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• The proposed disposal of Billi, conditional on shareholder approval, is transformational for the Group.
• Ahead of any movement in capital allocation, net cash would amount to c£37m on the repayment of all indebtedness.
• The net consideration of £107m equates to 45p/share, representing a premium to the current share price.

• Zhong Ao Home is a small, independent property management company in China facing a challenging market, characterized by stagnant revenue and declining profitability over the past several years.
• The company’s stock appears undervalued on traditional metrics (P/E, P/B) and offers a high dividend yield, which may attract value and income-oriented investors.
• Significant headwinds persist, including intense competition within a fragmented industry and a reliance on the troubled Chinese real estate sector, creating high uncertainty for future growth.

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• A flow of new contracts have been announced so far in December adding to the evidence of business progress.
• The relatively new biometrics department reported a new client, Global Antibiotic Research & Development Partnership (GARDP).
• This is a not-for-profit research and development organisation that addresses global public health needs by developing new or improved antibiotic treatments, while endeavouring to ensure sustainable access.