In today’s briefing:
- SELL Pop Mart (9992 HK): 1H26 Post-Results Takeaway
- SK Hynix (000660): Time to Build Position Again
- I-Scream Media: Listening to Minority Shareholders and Estimated Dividend Yield of 13%
- Tempsens Instruments IPO: Only Indian Manufacturer of Non-Contact Temperature Sensors
- Palantir Technologies’ 93% Revenue Surge — Is The AI Growth Engine Still Accelerating?
- Indian PSBs: Baroda (BOB IN) Stays a Buy, Adding Canara (CBK IN) As a Buy Replacing UBI (UNBK IN)
- Keisei (9009): Airport Expansion Beneficiary
- Indigo: Who Is Selling India’s Most Profitable Aviation Company?
- SMIC Q2 2026. Record Quarter & “AI Companion Chip” Demand Is Enormous
- Futu Holdings (FUTU US): A Splendid Show
SELL Pop Mart (9992 HK): 1H26 Post-Results Takeaway
- Growth. 1H26 revenue growth slowed sharply vs what is implied from consensus, confirming the reset we expected heading into results.
- Geography. Overseas revenue growth turned negative for the first time in the current growth cycle.
- IP sustainability. The flagship IP “The Monsters” declined YoY, partially offset by Twinkle Twinkle.
SK Hynix (000660): Time to Build Position Again
- SK Hynix (000660 KS) is trading at a historical low at 6x PER, and growth (as of now) remains intact.
- The share buyback announcement helped to catapult the share price by 12% today.
- The workers’ bonus in stocks should be seen as a risk – the total volume will not be material enough to affect daily liquidity.
I-Scream Media: Listening to Minority Shareholders and Estimated Dividend Yield of 13%
- I-Scream Media reported excellent results in 1H26. The company generated sales of 92.5 billion won (up 18.5% YoY) and operating profit of 23.9 billion won (up 64.5% YoY) in 1H26.
- The company is listening to its minority shareholders and seriously improving its corporate governance with higher shareholder returns. Estimated dividend yield is 13% this year.
- I Scream Media is trading at P/E of 4.5x and EV/EBITDA of 1.3x based on recent prices and TTM financials. Net cash as a percentage of market cap is 74%.
Tempsens Instruments IPO: Only Indian Manufacturer of Non-Contact Temperature Sensors
- Tempsens Instruments (India) (TEMPSENS IN) opens its INR 650 crore IPO on August 20, 2026, priced at INR 285–300 a share, valuing the business at up to INR 2,515 crore.
- The company controls ~10.5% of India’s temperature sensor market and is the country’s only non-contact sensor manufacturer, a rare listed proxy for industrial capex.
- Margins and market position are genuinely strong, but geographic concentration, a heavy offer-for-sale, and a 35x post-IPO multiple demand a closer look before subscribing.
Palantir Technologies’ 93% Revenue Surge — Is The AI Growth Engine Still Accelerating?
- Palantir Technologies reported exceptionally strong results in the second quarter of fiscal 2026, marked by a 93% year-over-year revenue growth, the highest in the company’s history, and a significant acceleration in its U.S. business.
- U.S. revenue accounted for over 81% of total revenue and grew 115% year-over-year, driven by 149% growth in U.S. commercial revenue and 90% growth in U.S. government revenue.
- The company closed a record number of large deals, including 220 deals worth $1 million or more, with 98 deals above $5 million and 73 deals exceeding $10 million.
Indian PSBs: Baroda (BOB IN) Stays a Buy, Adding Canara (CBK IN) As a Buy Replacing UBI (UNBK IN)
- We keep deep-value Bank of Baroda on the buy list, whilst replacing UBI with Canara on the buy list; Baroda trades at an over 50% discount to SBI’s PBV ratio
- Canara stands out for its PBV to ROE, as well as its prospective earnings and dividend yields; Canara has also been aggressively writing-off NPAs, reducing its low NPL ratio further
- We add Indian Bank to our coverage in this report; it ranks highly on the scorecard but we believe that Canara has the edge on valuation metrics and credit write-offs
Keisei (9009): Airport Expansion Beneficiary
- Keisei Electric Railway Co (9009 JP) is the main beneficiary of the Narita Airport capacity expansion. More travelers means a higher ridership rate.
- It now trades at 12x PER, share price normalized post COVID. Trades at a discount compared to Shinkansen operator like East Japan Railway Co (9020 JP)
- The short-term impact may be a little negative, but the mid- to long-term should be very positive.
Indigo: Who Is Selling India’s Most Profitable Aviation Company?
- Promoter holding fell from 74.77% in Mar-22 to 41.57% in Jun-26, driven overwhelmingly by the Gangwal family’s planned monetisation.
- Gangwal-Linked ownership is down from about 36.9% to 5.85%, while the Bhatia side remains near 35.7%, preserving a clear ownership anchor.
- Residual promoter supply is now finite and quantifiable; fuel, FX, capacity and international execution increasingly matter more than the ownership overhang.
SMIC Q2 2026. Record Quarter & “AI Companion Chip” Demand Is Enormous
- SMIC last week reported second quarter revenues of just over $3 billion, up 19.7% QoQ, up 36% YoY and handily beating the forecasted 15% growth at the midpoint.
- Gross margin was 25.3%, up 5.2 percentage points QoQ and up 4.9 points YoY. The significant improvement here was also attributed to both ASP increases a more favourable product mix.
- SMIC’s AI companion chip demand is enormous, we pulled forward shipments and increased this significantly. In this report we said the increase, on a comparable basis, should be around 40%.
Futu Holdings (FUTU US): A Splendid Show
- Futu Holdings Ltd (FUTU US)‘s 2Q26 non-GAAP net profit growth of 40.1% is impressive, suggesting that the negative impact of regulatory issues is fading.
- Operational metrics accelerated sequentially, partly due to the solid HK IPO pipeline, which is likely to sustain. 3Q26 momentum moderated slightly but is manageable.
- Its 12.1x FY26 PER is inflated given the room for earnings upgrades. It is also cheaper than the average of 17.2x since 2021 and 13.7x since 2025.
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