Daily Brief Equity Bottom-Up: NVIDIA. Burry’s Claims Miss The Forest For The Trees. The Real Issues Are Structural and more

• After taking short positions against Palantir & NVIDIA, Michael Burry has closed his hedge fund and taken to substack to continue his assault on the AI bubble
• While he makes some valid points, these are mainly things everybody already knows and in the end he’s missing the forest for the trees
• There are key structural issues surrounding the AI Infrastructure build out (grid, foundry, memory capacity to mention a few). These will drive course corrections, all by themselves.

• We compile our selection of companies across Japan, China and India based on bottom-up triggers in each company.
• Top-Picks in China are Haier Smart Home (6690 HK) , Midea Group (300 HK) and Yadea Group Holdings (1585 HK).
• Our top picks in Japan are Suzuki Motor (7269 JP) and ROHM Co Ltd (6963 JP) and in India-Auto it is Mahindra & Mahindra (MM IN) &Ashok Leyland (AL IN)

• Daicel is notable for being Japan’s only manufacturer of acetic acid and for holding world-leading market positions in some cellulose-acetate products and in acetate tow for cigarette filters.
• At current prices, the dividend yield of the company is at a healthy 4.6%. Its dividend yield averaged 4.4% from FY2021 to FY2025.
• The company has enjoyed a solid sales growth of 10.5% CAGR from FY2021 to FY2025. Operating income nearly doubled from FY2021 to FY2025.

• Unity Technologies reported strong results for the third quarter of 2025, surpassing both its own guidance and market expectations.
• The company demonstrated robust growth in its key segments, particularly in Grow, driven by the high performance of its Vector AI, and its Create segment also saw significant year-over-year growth.
• Positively, Unity’s Grow segment, which includes its Vector AI, experienced an 11% quarter-over-quarter increase.

• China announced game approval for the November batch. The number of games approved remained at a higher level than 2023.
• The pace of China game approval appears to have accelerated to above the pre-tightening level.
• Of the companies that we are monitoring, while market leader Tencent and Netease didn’t obtained approval, Kingsoft and Bilibili obtained approval for one game each.

• Our GEM bank top picks for 1H 2026 are Banrisul, Bradesco and Ping An Bank for very attractive fundamental valuations with healthy dividends and earnings growth potential
• We also have buy recommendations on China Construction Bank (CCB) and Hana Financial, both of which are deep value plays relative to their returns, combined with sound balance sheets
• Kotak Mahindra bank is our only sell recommendation for its premium valuation, even among Indian banks, relative to its underwhelming ROE prospects

• Symbotic Corporation recently reported its third-quarter financial results for fiscal year 2025.
• The company demonstrated a robust performance with a 26% year-over-year increase in revenue, reaching $592 million.
• This growth was attributed largely to the expansion and continued deployment of its 46 existing systems, alongside progress in Advanced Systems and Robotics (ASR) development.

• Reclaims Global Limited (“Reclaims”) is an integrated construction services provider specialising in excavation, construction and demolition (“C&D”) waste recycling, and logistics/equipment leasing.
• Since 2009, the Group has built an established operating track record supported by a sizeable in- house fleet and an end-to-end model covering demolition, deep excavation, material recovery, and transport.
• FY2025 marked a strong recovery, revenue almost doubled to S$44.4 million, with net profit almost tripling to S$5.6 million on higher excavation volumes and improved fleet utilisation.

• Bio-Techne delivered its first-quarter fiscal year 2026 results amidst a challenging market environment.
• Despite the company’s strategic and disciplined efforts, organic revenue declined by 1%, primarily due to timing issues in their Cell Therapy business from large customers and the ongoing softness in biotech funding.
• These timing issues were particularly impacted by FDA Fast Track Designations received by key customers that, while accelerating therapy approval timelines, reduced the near-term demand for reagents.

• InxMed is a clinical-stage biotechnology company with a strategic focus on overcoming cancer drug resistance and metastasis, primarily targeting the Chinese market.
• The company’s lead asset, Ifebemtinib (a FAK inhibitor), is being developed as a cornerstone of combination therapies across a range of solid tumors, a strategy that could unlock significant value where monotherapies have previously failed.
• While the pipeline holds promise, InxMed faces substantial risks typical of a clinical-stage biotech, including the inherent uncertainty of clinical trial outcomes, a competitive landscape for its targeted pathways (FAK and FAP), and the financial risks associated with drug development.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.