Daily Brief Equity Bottom-Up: Primer: Fast Retailing (9983 JP) – Oct 2025 and more

• Global Apparel Leader with Strong Growth Momentum: Fast Retailing is a dominant force in the global apparel industry, primarily through its flagship UNIQLO brand. The company has demonstrated a consistent track-record of robust, double-digit growth in revenue and profits, driven by the successful international expansion of UNIQLO, particularly in North America and Europe. The company forecasts continued strong growth, projecting a 10.3% revenue increase for FY2026.
• Unique Business Model Focused on Quality and Innovation: Unlike typical fast-fashion players that chase fleeting trends, Fast Retailing‘s ‘LifeWear’ philosophy emphasizes high-quality, functional, and durable basics. This is supported by a vertically integrated SPA (Specialty-Store Retailer of Private Label Apparel) model, which controls the entire process from design to sale, and a strong focus on material innovation and technology to enhance operational efficiency.
• Strategic Challenges and Key Risks Remain: Despite its success, the company faces significant risks. It has a heavy reliance on Asian markets, particularly Greater China, making it vulnerable to regional economic and geopolitical instability. The global apparel market is intensely competitive, and the company must contend with formidable rivals like Inditex (Zara) and H&M, as well as navigate supply chain complexities and potential controversies regarding labor practices.

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• The 11th national VBP has optimized the selection of price difference control “anchor points”, which is an important signal, implying that future VBP will follow the general direction of “anti-involution”.
• As long as there’s no significant difference in pipeline data, buyers are more concerned about the speed of R&D progress and may not necessarily dwell on potential advantages and disadvantages.
• Hengrui’s innovative drug revenue was slightly lower-than-expected. The Company’s 2025 employee stock ownership plan has lowered the compound growth target for innovative drugs from 30% to 25%.

• A recent fire at Novelis’ Oswego, New York, aluminum rolling mill has sent shockwaves through the U.S. auto manufacturing sector, with Ford Motor Co. standing out as one of the most directly affected.
• Novelis, the largest supplier of aluminum sheet to the U.S. auto industry, experienced a substantial disruption that forced the plant to temporarily halt production.
• Ford, which sources aluminum from this plant for several of its core vehicles, including the high-volume F-Series pickup trucks, is facing heightened supply chain risk as a result.

• GitLab has reentered the takeover rumor mill after a noticeable dip in its share price, reigniting chatter across trading floors and financial media alike.
• The latest speculation was stirred by a Betavile “uncooked” alert circulated on October 7, 2025, hinting that the DevSecOps platform may once again be attracting acquisition interest.
• This follows a July 2024 report that GitLab was exploring a potential sale after drawing interest from industry players including cloud monitoring giant Datadog (NASDAQ: DDOG).

• Info Edge delivered 12.1% year-on-year growth in Q2 FY26 billings to INR 729 crore, led by steady momentum in Non-IT hiring and healthy traction in 99acres and Jeevansathi.
• The mix shift toward Non-IT and consumer-facing platforms signals a stronger, more balanced growth profile, cushioning the business from the ongoing IT hiring slowdown.
• With diversified revenue streams, disciplined cost control, and early benefits from AI integration, Info Edge appears positioned for sustained growth and gradual margin expansion ahead.

• Intercontinental Exchange, the parent of the New York Stock Exchange, has confirmed a $2 billion investment in Polymarket, a blockchain-based prediction platform that lets users speculate on outcomes across politics, sports, finance, and pop culture.
• The investment, announced on October 7, 2025, values Polymarket at approximately $8 billion pre-investment and marks a decisive move by ICE into decentralized finance (DeFi).
• ICE will fund the deal entirely in cash, with no expected material impact on its 2025 earnings or capital return plans.

• Itron has struck headlines once again, this time by signing a definitive agreement to acquire Urbint for approximately $325 million, to be funded from cash on hand.
• The closing is expected in Q4 2025.
• This move follows a strong Q2 2025 delivered by Itron—with revenue of $607 million, record margins, and free cash flow of $91 million—though the company modestly trimmed its full year revenue midpoint while raising its EPS outlook.

• Two weeks ago, Nvidia announced a potential $100 billion investment in OpenAI to fund one of the largest data center buildouts in tech history, a move immediately questioned for its circular structure.
• Just days later, OpenAI inked a similarly structured deal with AMD, pledging tens of billions for chip purchases while simultaneously becoming one of AMD’s largest shareholders.
• These deals, while bold and futuristic, have sparked concern that the AI sector’s rapid trillion-dollar expansion is not entirely organic but propped up by a dense web of interlinked investments between a handful of players.

• Qualcomm has made headlines once again with its latest strategic move: the acquisition of Arduino, the opensource hardware pioneer boasting a 33 million-strong developer base.
• While financial terms remain undisclosed, the implications of this deal are significant.
• The acquisition aligns with Qualcomm’s push into automation, robotics, and the broader AI-enabled device ecosystem.

• The recent earnings report from Renault Group reflected a mixed performance marked by several strategic and financial dynamics.
• The introduction of François Provost as the new CEO was a noteworthy event, suggesting a leadership transition focused on continuity, strategic maneuverability, and performance standards.
• On the financial front, Renault Group’s revenues rose to €27.6 billion, marking a 3.6% increase at constant exchange rates compared to the previous year.