In today’s briefing:
- TOTO (5332 JP) | Beyond China
- CICT SP: Buy Singapore REITs on Steep Interest Rate Decline (3M SORA)
- The Beat Ideas: Indegene Ltd- The Quiet Tech Player Powering Big Pharma
- Kenvue Crashing?—New RFK Jr. Report May Blame Tylenol Use In Pregnancy For Autism!
- Rubrik 2Q’FY26 Wrap: Subscription NRR, Cash Flow Metrics Remain Robust. Growth Is Slowing Into FY27
- Zijin Gold IPO – The World’s Fastest-Growing Gold Producer, but at What Price?
- Naveen Jindal’s Bid for Thyssenkrupp Steel Europe – Sensible Valuation, Execution Critical
- Wells Fargo’s Post-Consent Order Comeback – Can It Rebuild Trust Fast Enough?
- Bank of America’s Digital Payments Approach – How Zelle Can Crush Venmo!
- MediaTek: Satellite Connectivity the Next Strategic Battleground for Mobile SoCs (Structural Long)
TOTO (5332 JP) | Beyond China
- Toto stock price -16% over past year vs index +24% as China growth story collapses. Restructuring China ops; targeting breakeven FY3/27
- New growth drivers: US capacity buildout underpins Americas sales growth, while electrostatic chucks beneficiary of SPE spend
- Stock trading at 30% discount to historical average and deep discount to global peers
CICT SP: Buy Singapore REITs on Steep Interest Rate Decline (3M SORA)
- The Singapore’s interest rate, 3M SORA, has declined steeply from 3.034% in January to 1.563% in September
- The steep decline in interest rate will directly benefit S-REITs, through reduced borrow cost, more attractive valuation, as well as stabilizing cap rates to support book valuation
- Among S-REITs, we think CICT SP, with its portfolio mostly Singapore assets, will benefit the most from this structural trend
The Beat Ideas: Indegene Ltd- The Quiet Tech Player Powering Big Pharma
- Indegene is shifting from transactional work to large-scale, transformative “Tectonic” deals, securing over US$1 million from two paid pilots in Q1 FY26.
- This pivot moves the company up the value chain, creating a durable competitive moat and positioning it as a strategic partner, not just a vendor.
- Indegene’s strong balance sheet and focused M&A strategy will likely accelerate this high-value growth, cementing its role as a key player in pharma’s digital future.
Kenvue Crashing?—New RFK Jr. Report May Blame Tylenol Use In Pregnancy For Autism!
- Shares of Kenvue Inc., maker of Tylenol, dropped roughly 10% in early September 2025 after media reports—primarily from The Wall Street Journal—indicated that U.S. Health Secretary Robert F.
- Kennedy Jr. will release a forthcoming HHS report that likely links prenatal use of acetaminophen (Tylenol’s active ingredient) to autism.
- This decline followed investor concern over what such a regulatory conclusion could mean for Kenvue’s reputation, sales, litigation exposure, and overall risk profile.
Rubrik 2Q’FY26 Wrap: Subscription NRR, Cash Flow Metrics Remain Robust. Growth Is Slowing Into FY27
- While Rubrik reported all key operating metrics and cash flow above expectations for 2Q’FY26, shares sold off over 10% on heavy volume.
- +35% y/y 3Q’FY26/+25% y/y 4Q’FY26 revenue growth guide raises questions about next FY27, in my view. Rubrik stock continues to trade at a premium valuation.
- Given the trends in the quarter and guidance, I believe the cybersecurity company can achieve and sustain 25%+ y/y revenue growth in FY26, FY27 and FY28.
Zijin Gold IPO – The World’s Fastest-Growing Gold Producer, but at What Price?
- Buy Case: ~20% CAGR growth to 2027E, SOE backing, and potential index inclusion make Zijin the fastest-growing gold producer globally.
- Sell Case: At $40bn, Zijin trades at major-level multiples with mid-tier reserve depth, raising questions on sustainability.
- Swing Factor: Gold price trajectory and flawless execution in Ghana, Laos, and Kazakhstan will determine if the IPO clears closer to the low or high end of the range.
Naveen Jindal’s Bid for Thyssenkrupp Steel Europe – Sensible Valuation, Execution Critical
- Funding not a hurdle: Promoter strength provides comfort despite past negative precedents.
- Valuation undemanding: Entry at ~US$440–475/t is below replacement cost and past cycle-peak deals.
- Execution heavy: Success depends on managing restructuring, integration, and EU policy commitments.
Wells Fargo’s Post-Consent Order Comeback – Can It Rebuild Trust Fast Enough?
- Wells Fargo & Company, in its second quarter of 2025 results, showcased a balanced mix of progression in growth strategies and sustained financial discipline.
- The net income of $5.5 billion, translating to $1.60 per diluted share, was an improvement from both the previous quarter and the same period last year.
- This growth indicates consistent execution amidst a transitioning phase post asset cap removal.
Bank of America’s Digital Payments Approach – How Zelle Can Crush Venmo!
- Bank of America Corporation reported robust second-quarter results that highlight strong organic growth across its varied business segments.
- The bank saw a 4% year-over-year increase in revenue, reaching $26.6 billion, alongside a 7% growth in net income to $7.1 billion.
- Earnings per share increased by 7%, reflecting effective cost management and growth strategies.
MediaTek: Satellite Connectivity the Next Strategic Battleground for Mobile SoCs (Structural Long)
- Starlink’s Direct-to-Phone Semiconductor Integration Push Signals a Major Shift Coming for Telecom
- Direct-To-Satellite Connectivity Could Become Critical for a Market-Competitive Smartphone SoC Design
- Leadership in Satellite Connectivity Will Soon Mean Leadership in Smartphone SoCs
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