Daily Brief Equity Bottom-Up: Sony Is Reinventing Gaming and more

• Sony Group Corporation reported a strong financial performance for the latest quarter with record sales and operating income figures.
• Sales from continuing operations increased by 5% year-on-year to JPY 3,107.9 billion, with a 10% rise in operating income to JPY 429 billion.
• Net income rose by 7% to JPY 311.4 billion.

• Max India (MAXI IN) , part of the historically successful Max Group, is transitioning into India’s only fully integrated senior care platform, Antara.
• The senior care market is projected to reach USD 33 Bn by 2030 from USD  13 Bn in 2024 driven by nuclear families and increasing affluence among the elderly.
• Key growth levers are the annual 1.5M sq. ft. development target in residences and the goal for AGEasy to reach breakeven by late FY ’27.

• TSMC: +23% Premium; Has Broken Down from Historically High Level
• ChipMOS: -3.0% Discount; Good Level to Go Long the ADR Spread
• CHT: -1.1% Discount; Good Level to Go Long the ADR Spread

• FY26–30 plan lifts scale ambitions, but ¥6 tn capex and U.S. Steel integration keep free cash flow negative through FY26.
• U.S. Steel synergies shift to FY27–28 amid labor, regulatory, and spread pressures, delaying ROCE recovery toward the 9–10% target.
• Look cheap on NTM multiples, but elevated leverage, FX sensitivity, and sub-8% forward ROCE limit near-term re-rating.

• Oracle rarely surprises Wall Street.
• This time, it did.
• After reporting another quarter of strong cloud growth, Oracle’s stock fell sharply by more than 10% in a single session, a rarity for a low-beta company.

• Perimeter Solutions is turning up the heat on its strategic ambitions with the proposed $685 million acquisition of Medical Manufacturing Technologies (MMT), a move that could reshape its operational landscape.
• Announced on December 10, 2025, the deal is expected to close in Q1 2026 and will be financed via $500 million in new secured debt and $185 million in existing cash.
• This announcement comes on the heels of Perimeter’s robust Q3 2025 performance, marked by $186.3 million in adjusted EBITDA and year-to-date free cash flow generation of $197 million.

• Pinterest is doubling down on performance advertising with a strategic move that could reshape its ad tech stack.
• On December 11, 2025, the visual discovery platform announced its intent to acquire tvScientific, a connected TV (CTV) performance advertising platform, with the deal expected to close in the first half of 2026.
• While financial terms were undisclosed, the strategic implications are significant.

• Unrivaled IP Portfolio Drives Synergistic Flywheel: Disney’s core competitive advantage lies in its unparalleled portfolio of intellectual property (IP), including Disney, Pixar, Marvel, and Star Wars. This IP fuels a synergistic business model, allowing for monetization across its Experiences, Entertainment, and Sports segments, from theme parks and merchandise to blockbuster films and streaming content.
• Strategic Pivot to Streaming Profitability: The company is navigating a significant transition, focusing on achieving sustained profitability in its Direct-to-Consumer (DTC) streaming business. While this segment has recently turned profitable, it faces intense competition and the challenge of offsetting the secular decline in traditional linear networks.
• Experiences Segment Remains the Profit Engine: The Disney Experiences segment, encompassing theme parks, resorts, and cruise lines, continues to be the primary driver of profitability, posting record operating income. Significant capital investment is planned for this division, signaling its central role in future growth while navigating challenges of rising costs and economic sensitivity.

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• Shift4 Payments reported solid third-quarter 2025 financial results, showcasing notable growth in several key performance indicators, though there are areas that require caution.
• The company posted gross revenue less network fees of $589 million, marking a 61% increase year-over-year.
• Adjusted EBITDA came in at $292 million, up by 56% from the previous year, with the organic growth excluding recent mergers and acquisitions at 18%.

• Amdocs reported its financial performance for the fourth quarter and full fiscal year of 2025, signaling key trends within the company and its strategic direction.
• On a pro forma constant currency basis—accounting for the phaseout of certain low-margin noncore business activities—Amdocs achieved revenue growth of 3.1% for the fiscal year.
• In the fourth quarter, revenue reached $1.15 billion, showing a 2.8% increase compared to the previous year in pro forma constant currency terms.