In today’s briefing:
- SSE50 Index Rebalance: 4 Changes a Side & US$2.2bn Trade
- Meesho IPO | Seller Operations and Nuances | India Internet Dynamics
- Taiwan Dual-Listings Monitor: TSMC ADR Spread Deeper in Historically Rare Zone
- Apple’s 18A Test Case Is the Inflection Intel Needed
- WRKR Ltd – Solid Q1 FY26 with investment to ramp up
- Pre-IPO JD Industrials (PHIP Updates) – Business Model, Peer Comparison, Forecast and Valuation
- ECM Weekly (1 December 2025)-Kioxia, Airtel, Nippon, Toyoda Gosei, SBI Shinsei, NS Group, Super Bank
- Kyivstar (KYIV US): New Starlink Direct to Cell Net Positive for Market Position
SSE50 Index Rebalance: 4 Changes a Side & US$2.2bn Trade
- There are 4 constituent changes for the SSE50 Index (SSE50 INDEX) that will be implemented at the close on 12 December.
- Dawning Information Industry C (603019 CH) is a surprise add given the upcoming merger with Hygon Information Technology C (688041 CH).
- The SSE50 Index adds have underperformed the deletes over the last couple of months and there could be outperformance from here as positioning builds ahead of the implementation of the changes.
Meesho IPO | Seller Operations and Nuances | India Internet Dynamics
- Profitable Arbitrage: Generates positive FCF by monetizing logistics spreads (Valmo) and ad-tech, effectively acting as a profitable toll booth for unorganized retail rather than a traditional commission-based marketplace.
- The Moat: Monopolizes “India 2” (<INR 300 AOV) via low-cost logistics infrastructure, creating a defensive barrier against Amazon and Flipkart’s higher-cost premium models.
- Downside Risk: Supply-side flywheel is fragile; high return rates driving seller churn could pose significant threats to long-term sustainability.
Taiwan Dual-Listings Monitor: TSMC ADR Spread Deeper in Historically Rare Zone
- TSMC: +27.1% Premium; Increased to More Historically Extreme Level; Deeper in Short Range
- UMC: +2.3% Premium; Good Level to Open a Short of The Spread
- ASE: +2.3% Premium; Wait Better Long Opportunity Near Parity or Below
Apple’s 18A Test Case Is the Inflection Intel Needed
- Multiple industry checks now indicate that Apple is preparing to source its entry-level M-series processors from Intel’s 18A node with EMIB-T packaging as early as 2027.
- The revenue impact will be modest, but the signalling value is enormous: Apple does not hand out advanced-node access unless the foundry roadmap is de-risked.
- This development aligns directly with the structural shifts we’ve been highlighting; Intel’s packaging-first wedge, foundry credibility, and TSMC’s overcapacity creating space for second-sourcing.
WRKR Ltd – Solid Q1 FY26 with investment to ramp up
- Wrkr Ltd (ASX:WRK) offers compliance solutions for Australian superannuation contributions and payroll including member onboarding, super payments, messaging and employee validation.
- WRK has delivered a record cash receipts quarter ($4.0m), +74% on the previous corresponding period (pcp) and +30% on Q4 FY25, aided by milestone payments and some overdue receipts from Q4 FY25 ($0.4m).
- Total costs increased 24% on Q4 FY25 as WRK prepares for client onboarding and continues product development.
Pre-IPO JD Industrials (PHIP Updates) – Business Model, Peer Comparison, Forecast and Valuation
- JD Industrials’ business model integrates the advantageous resources of JD Group and follows “self-operated heavy asset” route.The operation model is to rely on JD Logistics network to achieve efficient performance.
- The platform’s openness of JD Industrials is relatively limited. The entry and listing thresholds for merchants are higher than that of peers, which limits the rapid expansion of product richness.
- P/S is more appropriate because net profit fluctuates greatly and is more suitable for growth-oriented supply chain companies.JD Industrials’ valuation could be higher than ZKH but lower than Ww Grainger.
ECM Weekly (1 December 2025)-Kioxia, Airtel, Nippon, Toyoda Gosei, SBI Shinsei, NS Group, Super Bank
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPO front, busy season remains on in full swing going into the year end.
- On the placements front, there were a few large deals across the region.
Kyivstar (KYIV US): New Starlink Direct to Cell Net Positive for Market Position
- Kyivstar Group (KYIV US) launched Starlink Direct to Cell on November 24, making Ukraine the first European country with commercial satellite connectivity to mobile phones.
- Satellite connectivity provides Kyivstar a differentiated capability that should be positive for customer churn management given the ‘insurance value’ of having satellite backup connectivity for Ukrainians.
- Kyivstar’s Starlink partnership is a net positive for the shares. We reiterate our Structural Long rating and US$19.8 target price. KYIV shares are trading at just 5.1x 2025E EV/EBITDA.
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