Daily Brief Equity Bottom-Up: Sumber Alfaria Trijaya (AMRT IJ) – Outperforming with Essentials and more

• Sumber Alfaria Trijaya (AMRT IJ) booked a surprisingly strong set of 1Q2025 results, going against softer consumer sentiment, underlining Alfamart as a supplier of essential goods. 
• The company cut promotional spending in 1Q2025 by half, which improved profitability by 30% QoQ, but it still booked SSSG of 8.8% YoY, outperforming other consumer staples players. 
• Alfamart continued to open new stores in 1Q2025, targetting 1,000 new outlets this year. This should help drive growth in 2025, along with SSSG. Valuations remain attractive versus growth prospects.

• TSMC explained that the growing demand for autonomous driving technologies in smartphones, PCs, IoT devices, and the automotive industry is driving the development of its N4/N3 and N6RF process technologies.
• TSMC announced that the A14 process, which will adopt the new NanoFlex Pro technology, is scheduled to begin production in 2028.
• TSMC plans to launch CoWoS-L with 5.5x reticle size in 2026 and surpass current CoWoS limitations with 9.5x reticle size by 2027.

• The Bajaj Finance Ltd (BAF IN) vs. Kotak Mahindra Bank (KMB IN) Price-Ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• While one of the two companies displays higher revenue growth, the valuation might begin to become stretched. Fundamental key figures are provided to complement the statistical analysis.
• Trade setup, statistical properties, factor exposure, risk management strategies, and key events are discussed.

• Vulcan Materials is a major player in the construction aggregates market, providing the foundation for buildings, roads, and infrastructure in the United States.
• The company owns and operates quarries across the country, with a market cap close to $30 billion.
• Aggregates are essential for asphalt and concrete production, with Vulcan playing a crucial role in supplying this key material for construction projects.

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• Xiaomi to launch strategic new products on the 22nd, including the new SoC chip “Surge O1”.
• Xiaomi Surge O1 at a glance: benchmark scores suggest it’s a strong rival to MediaTek and Qualcomm.   
• While Xiaomi has not confirmed the chip’s foundry partner,  we believe it is very likely manufactured by Taiwan Semiconductor (TSMC) – ADR (TSM US).  

• Reports of Samsung securing 2nm customers (Nvidia, Qualcomm), but AMD is saying that TSMC has the best and only 2nm, Nvidia saying there’s no alternative to TSMC CoWoS.   
• Competition at 2nm / 18A is already over. Chips tape-out are rolling out. If Intel, Samsung can gain Foundry customers, it is for the next node 14A in 2027-28.
• The difficulty for Intel and Samsung is that TSMC is a lot faster to develop PDK, qualify process, tape-out chips. The total cost of chipdesign at US$0.5-1bn is another hurdle.  

• VEON returned to billion-dollar quarterly revenue in 1Q25; EBITDA grew 13.7% YoY on strong digital execution.
• Digital revenues rose 50% YoY, now 14.3% of group total.
• Kyivstar IPO on track for 3Q25 at US$2.3bn valuation; fintech optionality in Bangladesh and Ukraine emerging.

• CARE Ratings achieved its highest-ever standalone and consolidated income and profitability in FY25, significantly improving margins across the group.
• The results validate the effectiveness of the company’s quality-led growth strategy, operational efficiencies, and strategic investments in non-ratings and international businesses.
• The performance reinforces confidence in Care’s ability to outpace the industry and achieve its diversification targets, supported by strong execution and market positioning.

• F1 is evolving to be more than just a sport, focusing on entertainment and business development
• The fan base is becoming younger and more diverse, with 40% women and 60% men, average age 35
• F1 is balancing historic venues with new races, aiming for 24 races per season and considering new markets in Asia and Africa

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• Alibaba (BABA) reported C1Q25 top line in-line with our estimate and consensus. Taobao/Tmall (T/T) outperformed while Cainiao and Int’l commerce underperformed. 
• Stabilization of domestic e-commerce is a major positive. However, on-demand e-commerce at home and video e-commerce abroad are two global growth drivers, 
• We see new challenges emerging following business stabilization. We believe the management is up to the task. We keep BABA in our TOP BUY list and reiterate rating and TP.