In today’s briefing:
- Pop Mart (9992 HK): On IP Choice, But Not Blind Boxes, Waiting for Lower Price
- Shortlist of High Conviction Philippines Equity Ideas – June 2025
- Nippon Steel (5401 JP) – No Rival, No Discount, Limited Control
- Kimly: Stable Consumer Business, with Negative Working Capital and 6.1% Yield
- KPIT Tech: Strong Deal Wins Despite Tough Environment Attests Strong Competitive Positioning
- Dongfeng Motor(489HK)-Abandoned Restructuring,Cash > MCap : Can It Be A Dark Horse In Coming Future?
- AMMN.IJ – Smelter Ramp-Up Underway, Elang Optionality in Focus, Valuation Reflects Long-Term Upside
- Allegro MicroSystems: China-for-China Strategy to Harness Growth In One Of The World’s Largest Semiconductor Markets!
- ARM Ignites Growth with Armv9 CPUs, AI Partnerships, & Data Center Infiltration; What Lies Ahead?
- Allegheny Technologies Incorporated (ATI): Aerospace & Defense Sector Growth To Bolster Its Position & Capitalively Grow In Critical Markets!
Pop Mart (9992 HK): On IP Choice, But Not Blind Boxes, Waiting for Lower Price
- We believe Pop Mart’s advantage is its ability of choosing available IPs.
- We expect Pop Mart’s revenue will grow by 69% in 2025.
- However, the stock is overvalued by cross-sectional comparison and fairly valued by time-series comparison.
Shortlist of High Conviction Philippines Equity Ideas – June 2025
- We are gradually building a high-conviction coverage of ideas for mid and small-cap companies in the Philippines.
- We established metrics focusing on high ROCE, sustainable growth of 10-15% year-over-year, robust balance sheets, and prudent capital allocation, essential elements for identifying potential multi-bagger opportunities.
- We update our readers on developments in Asian Terminals (ATI PM) and Philippine Stock Exchange (PSE PM)
Nippon Steel (5401 JP) – No Rival, No Discount, Limited Control
- Nippon paid full price despite governance restrictions; with no credible rival, rejecting the golden share risked collapsing the deal.
- Historical golden share precedents imply 10–20% valuation discounts, yet Nippon accepted late-stage constraints without renegotiation.
- Funding mix includes bridge loans, hybrids, and asset sales, but proposed equity issuance near 40% below book risks EPS dilution and undermines capital discipline messaging.
Kimly: Stable Consumer Business, with Negative Working Capital and 6.1% Yield
- Kimly is a traditional coffee shop, food court and industrial canteen operator in Singapore
- The business is stable ( revenue & ROE) & the company enjoys high occupancy rate
- Profitability is facing challenge due to rising operational costs and increasing competition
KPIT Tech: Strong Deal Wins Despite Tough Environment Attests Strong Competitive Positioning
- KPIT Technologies (“KPIT”) reported $280mm worth of deal wins in Q4Y25, well beyond the typical run-rate of $150mm+, despite the tough demand environment, which demonstrates KPIT’s strong competitive positioning.
- KPIT’s Q4FY25 PAT excluding one-time income grew 18%+ YoY in INR and 15% YoY in constant currency (CC) terms. Revenue growth was 15% YoY and 3% QoQ in CC terms.
- Margins continued to be strong with Q4FY25 EBITDA margin at 21.1%. With this, the full-year FY25 EBITDA margin ended at 21%, in line with the upgraded guidance.
Dongfeng Motor(489HK)-Abandoned Restructuring,Cash > MCap : Can It Be A Dark Horse In Coming Future?
- Abandoned Restructuring: Recently Dongfeng Motor (489 HK) confirmed that there is no restructuring activity involving its controlling shareholder.This raises hope that it is looking to turnaround its operations by itself.
- New Energy Vehicle (NEV) transformation gaining momentum: NEV sales grew 34.4% YTD May 2025; Dongfeng leads with proprietary EV platforms, smart tech integration, and Huawei-backed high-end launches.
- Trades at just 0.32x P/B, Cash at USD 14bn is much higher than market cap of USD 4bn. significantly undervalued versus peers, despite strong cash reserves,rising exports, and NEV scaling.
AMMN.IJ – Smelter Ramp-Up Underway, Elang Optionality in Focus, Valuation Reflects Long-Term Upside
- Q1 2025 results reflected a transitional quarter with lower grades, but FY2025 guidance was maintained.
- Ongoing investments in smelter ramp-up, power infrastructure, and long-term plans for Elang underscore AMMN’s integrated growth strategy.
- Valuations appear premium vs peers, but are partly justified by structural cost advantages, downstream leverage, and world-class Elang optionality—though single-asset exposure remains a key risk.
Allegro MicroSystems: China-for-China Strategy to Harness Growth In One Of The World’s Largest Semiconductor Markets!
- Allegro MicroSystems has reported its financial results for the fourth quarter and the full fiscal year 2025.
- The company is focused on strengthening its market position through innovation and operational efficiencies.
- President and CEO Mike Doogue, who ascended from being the company’s first Chief Technology Officer, emphasized a strategic focus on expanding product capabilities and extending Allegro’s footprint in lucrative markets such as automotive, industrial, and emerging sectors like medical and robotics.
ARM Ignites Growth with Armv9 CPUs, AI Partnerships, & Data Center Infiltration; What Lies Ahead?
- The latest financial results for Arm Holdings reflect a strong finish for their fiscal year ended March 31, 2025, marked by record-breaking revenue milestones.
- Arm’s performance was driven by growing demand for power efficient compute solutions, particularly in artificial intelligence (AI) from cloud to edge.
- The company achieved quarterly revenue exceeding $1 billion for the first time, with fiscal year revenue surpassing $4 billion.
Allegheny Technologies Incorporated (ATI): Aerospace & Defense Sector Growth To Bolster Its Position & Capitalively Grow In Critical Markets!
- ATI reported robust first-quarter financial results for 2025, showing continued strong momentum.
- Revenue grew by 10% year-over-year, reaching approximately $1.14 billion, mainly driven by high demand in aerospace and defense (A&D).
- The company’s adjusted EBITDA of $195 million exceeded expectations, with adjusted earnings per share also surpassing the top of guidance.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
