In today’s briefing:
- Philippines Exchange (PSE PM): IPO Pipeline to Cross 200 Bn (>142% YoY) Pesos For 2025
- BYD (1211 HK): Flat Sales Volume in August and Lower Margin in 1H25
- KT&G: Selling 57 Real Estate Properties to Generate 1 Trillion Won in Additional Cash Flow
- Golden Throat (6896 HK): China’s Leading Lozenge Maker at 10x P/E and a 10% Dividend Yield
- ICLN’s Upward Momentum to Last Longer as Investors Pivot to Clean Energy
- Nitto Boseki (Nittobo, TSE:3110) – Expansion Unlocks AI-Linked Growth, but Execution Key
- The Beat Ideas: Nalco’s ₹30,000 Crore Expansion
- Pinduoduo’s Growth Slows as Competition, Tariffs Hit Temu Expansion
- GEM Exchanges –Scorecard Confirms Brazilian Exchange B3 (B3SA3 BZ) As Our Top Pick
- Business Breakdown: Akums Drugs – Market Leader with Global Ambitions
Philippines Exchange (PSE PM): IPO Pipeline to Cross 200 Bn (>142% YoY) Pesos For 2025
- With Maynilad Water Services Inc.’s largest IPO in the Philippines, slated for October 2025, targeting up to ₱45.8 billion in total raise, PSE’s IPO pipeline will exceed ₱ 200 billion.
- It represents a substantial >142% YoY increase over 2024 (where IPO pipeline was ₱82.4 billion), with the majority of it back-end loaded (pipeline completed till Aug FY25 ₱70 billion)
- Trading at 15x FY25 PE, with 18% of the market cap in cash, a 6% dividend yield, and multiple growth levers in the future, this is a stock to explore.
BYD (1211 HK): Flat Sales Volume in August and Lower Margin in 1H25
- In August, BYD’s total sales volume was still flat and its domestic sales volume continued to shrink.
- The operating margin declined significantly to 2.3% in 1H25 from 4.4% in 1H24.
- The P/E band suggests a downside of 23% and a price target of HK$89.00.
KT&G: Selling 57 Real Estate Properties to Generate 1 Trillion Won in Additional Cash Flow
- KT&G announced that it is selling numerous properties nationwide as well as financial assets, aiming to generate about 1 trillion won in additional cash flow.
- KT&G has started to sell off a number of real estate properties in Seoul, Bundang, Daegu, Sejong, Busan, and North Chungcheong, and other parts of Korea through public bidding process.
- Four key catalysts with KT&G include an increasing probability of cigarette price hike, asset sales of non-core properties/improving corporate governance, high dividend yields, and profitable growth of core tobacco business.
Golden Throat (6896 HK): China’s Leading Lozenge Maker at 10x P/E and a 10% Dividend Yield
Golden Throat (6896 HK — US$343 million) is an iconic Chinese brand of throat lozenges, used to deal with sore or dry throats.
The core product is similar to Strepsils, Halls, or Ricola, but is sold over-the-counter in pharmacies.
The company sells 146 million boxes per year and has an estimated market share of 26% in China.
ICLN’s Upward Momentum to Last Longer as Investors Pivot to Clean Energy
- ICLN has surged more than 35% since April, driven by record renewable generation, strong corporate earnings, and institutional inflows.
- Investors and banks are rotating capital from fossil fuels into clean energy, signalling structural shifts and fuelling the rise of solar and renewables.
- Global clean energy investment, led by solar, points to the early stages of a solar super cycle, positioning ICLN as a prime long-term play.
Nitto Boseki (Nittobo, TSE:3110) – Expansion Unlocks AI-Linked Growth, but Execution Key
- ¥15 Bn investment to triple glass cloth capacity at Fukushima plant, with new operations starting Q4 FY2026.
- Demand for low-dielectric and T-glass cloth in AI servers and semiconductors has outpaced supply, creating a strategic bottleneck and premium pricing.
- Full earnings uplift from FY2027 onward, with projected revenue and EPS rising 12–15% post-expansion.
The Beat Ideas: Nalco’s ₹30,000 Crore Expansion
- National Aluminium (NACL IN) has announced a significant INR 30,000 crore capex over the next five years, its largest in recent history, to expand its core smelting, power generation capabilities.
- Targeting an almost doubling of its smelting capacity and securing long-term power supply. This is crucial for NALCO to enhance its competitiveness and achieve the coveted “Maharatna” status by 2030.
- This expansion, funded by a mix of internal accruals and debt, positions NALCO for an earnings inflection point, contingent on disciplined execution and favorable long-term commodity cycles.
Pinduoduo’s Growth Slows as Competition, Tariffs Hit Temu Expansion
- Pinduoduo Holdings Inc. on Monday reported its slowest revenue growth in three years, as the Chinese e-commerce giant ran into stiffer competition at home and new tariff challenges abroad for its overseas arm Temu.
- The Nasdaq-listed company posted second-quarter revenue of 103.99 billion yuan ($14.5billion), just above market expectations and up 7% from a year earlier. That marked the fifth straight quarter of deceleration and the slowest pace since mid-2022.
- Pinduoduo’s meteoric rise since launching Temu in September 2022 peaked with a 131% revenue surge in the first quarter of 2024. Growth has slowed each quarter since, falling to 86% in the second quarter of 2024, 44% in the third, 24% in the fourth, and only 10% in the first quarter of 2025.
GEM Exchanges –Scorecard Confirms Brazilian Exchange B3 (B3SA3 BZ) As Our Top Pick
- We stick with Brazilian exchange B3 as our buy pick, as the scorecard indicates; data represents the highest share of total revenues versus peers and its post-trade revenues are understated
- We downgrade Hong Kong Exchange to a neutral from buy, after its strong share price performance YTD; we feel much growth potential is discounted at current valuations
- We downgrade BSE to a sell rating as it trades on rich fundamental valuations making it vulnerable to negative earnings surprises; its EBITDA margin no longer lags its peer group
Business Breakdown: Akums Drugs – Market Leader with Global Ambitions
- Akums secured a €200m European supply contract, marking its first large entry into regulated markets and validating its compliance and scale capabilities.
- This shifts Akums from a domestic CDMO leader to a credible global player, with exports positioned to become a material earnings contributor from FY27.
- While near-term growth remains muted, Akums’ medium-term profile looks stronger, with greater diversification and reduced dependence on India’s CDMO cycle.
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