In today’s briefing:
- HK Strategy: An Update on Playing the Future H IPOs of the As
- HSBC – Loss Loans up 7.5x from FY19 to 2Q25 in HKMA Industry Data. Hang Seng Bank Buyout, Now?
- Japan Morning Connection: Power and Industrial Semis in Focus After Infineon Big Beat on AI
- Ohayo Japan | Dow Smashes 48,000 Barrier
- Substrate. ASML, TSMC Slayer Or Ideological Pipe Dream?
- Asia Real Estate Tracker (12-Nov-2025): ABI Plaza Provides Edge in Singapore’s Office Market
- What’s News in Amsterdam
HK Strategy: An Update on Playing the Future H IPOs of the As
- For the 16 H-share IPOs of A-shares this year, the average YTD narrowing in the H-A discount is 9.1pp, with growth prospects remaining the key driver.
- Lens Technology (6613 HK), Fortior Technology (1304 HK), SICC (2631 HK), Sany Heavy (6031 HK), and CIG Shanghai (6166 HK) are high-growth names with discount reduction.
- Opportunities exist in Seres Group (9927 HK) and Ningbo Joyson Electronic (699 HK) as they are expected to post 30%+ EPS CAGR, yet the discount has widened.
HSBC – Loss Loans up 7.5x from FY19 to 2Q25 in HKMA Industry Data. Hang Seng Bank Buyout, Now?
- HKMA data shows the loss loan ratio in HK is up 7.5x from FY19 to 2Q25. These are the worst of the worst bad loans
- Substandard loan ratio in HK is up 4.7x over the same period, and this bucket can gradually migrate to worse buckets, requiring more credit costs
- Overdue loan ratio and rescheduled loan ratio in HK is up 5.4x over this period, and these are not technically NPLs
Japan Morning Connection: Power and Industrial Semis in Focus After Infineon Big Beat on AI
- NAND memory spot prices surge another 17% WoW on worsening S/D dynamics.
- No take-over for Trend Micro, but an accelerated buyback will be enough for a short-term squeeze.
- Sanken may be back in focus given its deep disc NAV as sentiment rises for power and industrial names.
Ohayo Japan | Dow Smashes 48,000 Barrier
- Dow hit record high (+0.7%) after Senate passed spending bill to end 43-day shutdown; financials led, S&P +0.1%, Nasdaq -0.3%.
- Sony (6758): Launches Japan-only PS5 Digital Edition at ¥55,000 (¥18,000 below current) from Nov 21 to expand user base in year 5 with 4,500+ titles.
- Paris Miki announces MBO via founder TOB at 50% premium; Star Precision faces ¥70bn TOB from Taiyo Pacific at 30% premium.
Substrate. ASML, TSMC Slayer Or Ideological Pipe Dream?
- Silicon valley startup Substrate made waves two weeks ago when they emerged from stealth mode to announce a revolutionary new tool they claim will rival ASML’s EUV lithography capability
- Substrate simultaneously plans to build next-generation semiconductor fabs to return America to dominance in semiconductor production and will use their technology—a new form of advanced X-ray lithography—to power them.
- For a three year old startup, whos CEO has zero documented experience of semiconductors or lithography, these are bold claims indeed. This should be interesting!
Asia Real Estate Tracker (12-Nov-2025): ABI Plaza Provides Edge in Singapore’s Office Market
- ABI Plaza provides a significant competitive edge in Singapore’s office market landscape.
- Brookfield’s $1.5 billion sale of Ecoworld represents India’s largest office transaction to a REIT.
- A $436 million bid for a site on Bukit Timah Road highlights the luxury real estate sector’s growth.
What’s News in Amsterdam
- Dutch Telegraaf newspaper reports that Substrate, a US-based start-up founded in 2022, aims to challenge ASML’s dominance in advanced chip machinery.
- Unlike ASML’s extreme-ultraviolet (EUV) lithography, Substrate uses beams from a mini-particle accelerator, claiming this method can produce smaller, cheaper chips.
- The company intends not only to sell the machines but also to manufacture chips in-house at a US facility within a few years.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
