In today’s briefing:
- Zijin Gold International – Creating a Global Pure-Play Gold Champion
- Stat-Arb Pair Trade: Long Central Bank Of India (CBOI IN) Vs. Short Indian Overseas Bank (IOB IN)
- Tokyo Electron — Navigating the Cycle, Leveraged to AI/HBM Growth
- Long Isuzu (7202 JP) Vs. Short Suzuki (7269 JP): Statistical Arbitrage in Japanese Autos Targets 10%
- How to Play the Chinese Domestic Economic Drivers
- US Tariffs on Imports from Japan Lowered to 15% but Imports from Korea Are Unchanged at 25% – Why?
- Premier Inc. Could Be The Next Big Buyout—Here’s Why Patient Square Capital Is Eyeing It!
- United Airlines Premium Push: Will Extra Luxury Seats Provide A Much Needed Margin Boost?
- Daifuku (6383 JP): Global Automation Leader with Structural AI Tailwinds
- 2330 TT – TSMC Advanced Node Secrets: Will N2 Become the Profit Engine of the Future?
Zijin Gold International – Creating a Global Pure-Play Gold Champion
- Zijin Mining is spinning off its seven overseas gold mines into Zijin Gold International, creating a dedicated, pure-play gold producer and positioning it for a Hong Kong IPO.
- The IPO proceeds will primarily fund mine upgrades and overseas M&A, with a portion earmarked to reinforce the balance sheet and corporate flexibility.
- With media reports suggesting a $3B+ IPO size and potential launch in September, coupled with gold rallying above $3,600/oz, investor appetite around the listing is notably heightened.
Stat-Arb Pair Trade: Long Central Bank Of India (CBOI IN) Vs. Short Indian Overseas Bank (IOB IN)
- Context: The Central Bank Of India (CBOI IN) vs. Indian Overseas Bank (IOB IN) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights: Going long Central Bank Of India (CBOI IN) vs. short Indian Overseas Bank (IOB IN) targets a 5% return to the statistical mean reversion level.
- Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.
Tokyo Electron — Navigating the Cycle, Leveraged to AI/HBM Growth
- Steady past performance, soft Q1: TEL doubled revenues and EPS since FY2021 with margins near 30%, but Q1 FY2026 showed a YoY dip as NAND/DRAM digestion hit.
- Expansion plans: ¥700 bn capex and ¥1.5 tn R&D by FY2029 will lift capacity ~+80%, aligned with AI logic and HBM-driven WFE growth.
- Valuation & growth: At ~18× forward P/E, TEL trades fair vs Lam/Applied but at a steep discount to ASML/KLA, offering upside if recovery unfolds.
Long Isuzu (7202 JP) Vs. Short Suzuki (7269 JP): Statistical Arbitrage in Japanese Autos Targets 10%
- Context: The Isuzu (7202 JP) vs. Suzuki (7269 JP) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights: Going long Isuzu (7202 JP) and short Suzuki (7269 JP) targets a 10% return.
- Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.
How to Play the Chinese Domestic Economic Drivers
- China’s service sector is growing faster than manufacturing and construction, especially the business-to-business services, like IT Services, cloud services leasing and other business services.
- Among merchandize retail sectors, household and communication appliances, sports and recreational goods and gold and silver jewelry are growing the fastest. Some segments of food are enjoying healthy growth too.
- From a universe of 35 stocks in these sectors, we screen our favored 10, based on valuations more than justified by forecast earnings growth, high ROE and consensus Buy rating.
US Tariffs on Imports from Japan Lowered to 15% but Imports from Korea Are Unchanged at 25% – Why?
- One of the biggest events in Korea in the past week has been the uncertainty regarding the US tariffs on South Korea which remains unchanged at 25%.
- On top of this, it was reported on 9 September that the US tariffs on Japanese goods including cars and auto parts will be lowered to 15% by 16 September.
- If Lee’s approval rating falls to about 45% to 50% range, then there could be a greater urgency by the Korean government to finalize a trade deal with the US.
Premier Inc. Could Be The Next Big Buyout—Here’s Why Patient Square Capital Is Eyeing It!
- Premier Inc, a healthcare group purchasing and technology company, has recently become the subject of acquisition interest from private equity firm Patient Square Capital.
- Founded by former KKR executive Jim Momtazee, Patient Square is exploring a potential deal to take Premier private, according to reports.
- Discussions are still at an early stage with no certainty that a transaction will occur, but financing efforts are underway.
United Airlines Premium Push: Will Extra Luxury Seats Provide A Much Needed Margin Boost?
- United Airlines Holdings’ second-quarter 2025 earnings showcased a mix of operational triumphs and challenges.
- The company reported earnings per share (EPS) of $3.87, aligning with guidance while slightly ahead of market expectations, despite operational disruptions at Newark Airport and a challenging macroeconomic environment.
- Positive developments included the successful management of operational issues at Newark, which had suffered from cancellations and delays due to FAA technology outages and staffing shortages.
Daifuku (6383 JP): Global Automation Leader with Structural AI Tailwinds
- Business: Designs and integrates intralogistics, cleanroom, airport, and automotive automation systems.
- Expanding AI-driven logistics and semiconductor cleanroom solutions, with recurring service growth.
- Earnings projected to grow mid-teens CAGR to FY27E, with multiples compressing from ~25× P/E / 15× EV/EBITDA to ~20× / 12×, justifying a structural premium.
2330 TT – TSMC Advanced Node Secrets: Will N2 Become the Profit Engine of the Future?
- The Taiwan Semiconductor Manufacturing Company, commonly referred to as TSMC, provided an earnings overview for the second quarter of 2025, demonstrating significant financial and operational insights.
- The revenue for the quarter showcased an 11.3% sequential increase in New Taiwan dollars, driven by strong demand for TSMC’s advanced 3-nanometer and 5-nanometer technologies.
- However, the positive revenue growth was somewhat countered by unfavorable exchange rate impacts.
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