In today’s briefing:
- Horizon Robotics (9660 HK): Index Inclusion & Upweights to Drive US$1bn Inflows
- Korea’s Next Policy Momentum Play: Rapid Unfolding of the National Growth Fund
- Shibaura Electronics (6957 JP): Core Designation Does Not Change Yageo’s Calculus
- AEM Holdings: Another CEO, Another Kitchen Sink?
- S&P500 September 2025 Initial Forecast: MicroStrategy (MSTR) Emerges Post-Earnings
- HKBN (1310 HK): China Mobile’s Offer Now Open
- Softbank Group (9984 JP) Outlook (Pre-Earnings Price Range Forecast)
- Intel. Was Tesla’s Deal With Samsung The Death Knell For IFS?
- KPIT Tech (“KPIT”): Decent Q1FY26 Despite Tough Macro
- Hochiki Corp (6745 JP): Q1 FY03/26 flash update
Horizon Robotics (9660 HK): Index Inclusion & Upweights to Drive US$1bn Inflows
- There should be big passive inflows to Horizon Robotics (9660 HK) over the next 6 weeks and that could take the stock higher in the short term.
- Southbound Stock Connect investors have bought more than 10% of the Class B shares outstanding since the stock was added to the link a couple of months ago.
- Short interest jumped following the Stock Connect inclusion but there has been covering over the last few weeks. Short-term direction for the stock price looks to be higher.
Korea’s Next Policy Momentum Play: Rapid Unfolding of the National Growth Fund
- From a trading view, no confirmed new ETFs under the National Growth Fund yet; market expects existing ETFs to be the main liquidity and sector play tools instead.
- Out of the KRW 150tn, ETF flows likely come from the 100tn private pool—conservative case: ~3% (KRW 4.5tn), base case: 5–7%, aggressive: up to 10% (KRW 15tn).
- Even conservatively, about KRW 3 trillion could flow into sector ETFs, a signficant AUM boost, mainly concentrated in AI, defense, aerospace, and biotech—driving notable inflow impact.
Shibaura Electronics (6957 JP): Core Designation Does Not Change Yageo’s Calculus
- Reuters reports that the Ministry of Finance of Japan reclassified Shibaura Electronics (6957 JP) from a Type 1 (non-designated business sector) to Type 3 (core designated company).
- Reportedly, Yageo’s application was made with a view to Shibaura’s businesses falling under the core category. A blocked deal would set back Prime Minister Ishiba’s goal to improve China relations.
- The change to Shibaura’s designation to core helps explain the elongated approval process, as the Ministry of Finance and Yageo need time to agree on acceptable undertakings.
AEM Holdings: Another CEO, Another Kitchen Sink?
- AEM (AEM SP) announced a new CEO, Samer Kabbani, would take over with immediate effect.
- The previous CEO, Amy Leong, had only been in the job for about a year. The rapid change of CEO does not instill confidence going into 2Q25 results next week.
- New CEO’s frequently kitchen sink upon their appointment, will Samer continue this trend?
S&P500 September 2025 Initial Forecast: MicroStrategy (MSTR) Emerges Post-Earnings
- Microstrategy Inc Cl A (MSTR US) became eligible for inclusion in S&P500 following its quarterly earnings of $10bn on 31 July.
- Robinhood Markets (HOOD US), Microstrategy Inc Cl A (MSTR US), and AppLovin (APP US) are the main candidates for addition from TMI at the September 2025 review.
- Interactive Brokers Group, Inc (IBKR US) and Emcor Group Inc (EME US) are the main candidates for addition from MidCap at the September 2025 review.
HKBN (1310 HK): China Mobile’s Offer Now Open
- On the 1st August, HKBN Ltd (1310 HK) announced China Mobile (941 HK) had satisfied all pre-cons. The Offer Doc is now out.
- The First Close is the 3rd September with payment potentially on or around the 12th September – if the Offer turns unconditional on the First Close.
- There is no IFA opinion in this Doc. That will be present in the Response Doc, which is expected to be dispatched on or before the 20th August.
Softbank Group (9984 JP) Outlook (Pre-Earnings Price Range Forecast)
- Softbank Group (9984 JP) is about to release its earnings on August 7th.
- The stock pulled back last week but this week is rallying. The rally can easily reach Q2 (12416) and Q3 (13003) resistance zones, if the earnings are good.
- If the earnings are disappointing, look for initial support at 11145 (Q3). If earnings are really disappointing, look at 10086 (outliers zone).
Intel. Was Tesla’s Deal With Samsung The Death Knell For IFS?
- Tesla & Samsung just inked an eight year, $16.5 billion foundry deal set to run from July 24, 2025 through December 31, 2033.
- Had Intel snagged this deal, it would have been a lifesaver for the company. Not getting it likely triggered the updated “Risk Factors” section in their latest 10K.
- This isn’t Intel playing politics, there’s no point. It’s LBT laying it on the line for investors. Continued investment in 14A is no longer a given. It’s that simple…
KPIT Tech (“KPIT”): Decent Q1FY26 Despite Tough Macro
- KPIT reported a decent Q1FY26 considering the tough macro environment faced by its global auto OEM clients, who are struggling due to tariff uncertainty and intense competition from China OEMs.
- KPIT announced new deal wins worth $241mm vs typical run-rate of $170mm. Q1FY26 revenue grew 4.9% YoY and -3.2% QoQ in constant currency terms, led by Powertrain and Connected domains.
- A key highlight of Q1FY26 was KPIT announcing partnership with JSW for its new EV vehicle program. EBITDA margin stayed steady at 21% led by operational efficiency and currency gains.
Hochiki Corp (6745 JP): Q1 FY03/26 flash update
- Q1 consolidated revenue reached JPY22.4bn, a 7.1% YoY increase, marking the 13th consecutive quarter of growth.
- Operating profit surged approximately 2.2x YoY to JPY1.1bn, with an OPM increase of 2.4pp to 4.8%.
- Orders increased by 8.9% YoY to JPY34.5bn, while the order backlog decreased by 3.0% YoY to JPY39.5bn.
💡 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
