In today’s briefing:
- FEFTA Classification Changes Summer 2025
- [Japan ECM/Index] Japan Business Systems (5036) Offering Triggers Move to TOPIX
- IFAST Placement – Great Track Record but the Stock Is Toppish
- FnGuide Semiconductor Top10 Index Rebalance Preview: Two Changes Likely in September
- Tencent (700 HK): Positioning After 41% YTD Rally with Collar Strategies
- Quiddity Leaderboard HSIII Sep25: Announcement This Week; 3 Changes Likely
- Tencent (700 HK): Rally Before Results, Options Market Repricing After
- Kyndryl’s $1.8 Billion Partnership Pipeline & Consulting Growth—Is There A Good Upside?
- SUMCO Q225. Operating Profit Tanks As Depreciation Soars
- ON Semiconductor Is Reshaping Its Business—Could Strategic Exits Unlock Massive Growth?
FEFTA Classification Changes Summer 2025
- The Ministry of Finance has published an updated “FEFTA List” of classifications of listed companies as of July 15, 2025.
- 50 names lowered their ranks from the most “core” Type 3 to Type 2(20), or Type 1(30). 104 names raised from Type 1(51) or Type 2(53) to Type 3.
- Smartkarma readers may want to peruse the lists and details to see if they think companies are trying to protect themselves (from threats as yet not known by the public).
[Japan ECM/Index] Japan Business Systems (5036) Offering Triggers Move to TOPIX
- Japan Business Systems (5036 JP) today announced a couple of interesting things. First, admission to TOPIX (contingent on a successful secondary offering of shares, also announced today).
- Then a ¥5/share special commemorative dividend (0.4%) and a “gift” of 4% of the company to a J-ESOP Trust for employees, where the company gifts the shares.
- The latter looks aggressive/generous, but the modalities here are interesting.
IFAST Placement – Great Track Record but the Stock Is Toppish
- Temasek aims to raise around US$104m via selling nearly half of its stake in iFAST (IFAST SP).
- The stock has done exceptionally well over the past few years, however, it is now trading at its all time highs.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
FnGuide Semiconductor Top10 Index Rebalance Preview: Two Changes Likely in September
- With the averaging period for the October rebalance starting in two weeks, we forecast 2 changes for the FnGuide Semiconductor Top10 Index at the upcoming rebalance.
- Based on the passive assets tracking the index, there will be between 1.5-4.7x ADV to trade in the forecast changes.
- On average, the forecast adds have outperformed the forecast deletes by a wide margin over the last 3 months and could reverse some of the changes from the April rebalance.
Tencent (700 HK): Positioning After 41% YTD Rally with Collar Strategies
- Context:Tencent (700 HK) has performed strongly this year, gaining 41% YTD, including 5.5% last week around its earnings release.
- Volatility Skew: A rare setup shows calls trading rich versus puts, creating favorable conditions for protective collar strategies.
- Actionable Trade Ideas: Three variations of a protective collar — with charts, pricing, and Greeks — illustrate how to position in the current market.
Quiddity Leaderboard HSIII Sep25: Announcement This Week; 3 Changes Likely
- The Hang Seng Internet & IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
- We see three ADDs and three DELs and one float percentage revision which could collectively trigger roughly US$428mn in one-way index flows in September 2025.
- The index changes will be announced after the close on Friday 22nd August 2025.
Tencent (700 HK): Rally Before Results, Options Market Repricing After
- Context:Tencent (700 HK) reported 2Q25 results last week, beating expectations and fueling a 5.5% move in the stock.
- Market Reaction: Shares rallied while front-end options saw a pronounced volatility crush, rotating the term structure back into contango.
- Why Read: This note unpacks Tencent’s price action and the evolving volatility setup.
Kyndryl’s $1.8 Billion Partnership Pipeline & Consulting Growth—Is There A Good Upside?
- Kyndryl, a prominent player in mission-critical enterprise technology services, presented its earnings results for the first fiscal quarter ending June 30, 2025.
- The company’s financial performance showcased notable progress alongside certain challenges, reflecting the ongoing transformation and strategic initiatives implemented since the spin-off from IBM.
- The company reported revenue of $3.7 billion for the quarter, an increase on a reported basis but a decline of 2.6% in constant currency.
SUMCO Q225. Operating Profit Tanks As Depreciation Soars
- SUMCO reported Q225 revenues of ¥102.9 billion, flat sequentially and roughly 3% higher than guidance.
- Operating profit of ¥1.5 billion was also slightly better than the forecasted breakeven, but dramatically down from its peak of ¥30.2 billion in Q322.
- A projected further increase in depreciation charges for the current quarter is forecasted to drive operating profit to negative ¥3.5 billion. Yikes!
ON Semiconductor Is Reshaping Its Business—Could Strategic Exits Unlock Massive Growth?
- ON Semiconductor’s recent quarterly performance showcases a nuanced landscape as it navigates market dynamics and strategic shifts.
- The company reported a 1.6% increase in revenue for the quarter, totaling $1.47 billion, which exceeded the midpoint of its guidance.
- The non-GAAP gross margin was 37.6%, with an earnings per share (EPS) of $0.53.
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