In today’s briefing:
- 2026 High Conviction Idea: SK Inc
- 2026 High Conviction – Japan’s Triple Play: How PBR Reform, AI, and Banks Unlock Alpha
- Meesho Ltd IPO- Watch Out for Impairment Allowance
- Meesho Ltd IPO – Value-Led Play, Moderately Priced
- NVIDIA Invests $2 Billion In Synopsys. But Why?
- Meesho’s Valmo | Erosion of Delhivery’s Margins
- Geechs (7060 Jp) – Q2 Follow-Up: November 28, 2025
- Meesho:Data Science Workhorse;Fast Evolving—Venturing into Financial Services & Other AI Investments
- Telecom 3Q25: Stronger Margins and a More Constructive Outlook
- C3.ai, Inc. – IPDs and the Gross Margin Squeeze
2026 High Conviction Idea: SK Inc
- Three main reasons why SK Inc is our high conviction in 2026 include mandatory cancellation of treasury shares, deep discount to NAV, and the end of divorce for Chairman Chey.
- SK Inc has 17.98 million shares in treasury, representing 24.8% of outstanding shares. Among the stocks included in KOSPI200, this is one of the highest percentage of treasury shares.
- Our NAV valuation analysis suggests NAV of 28 trillion won or NAV per share of 386,469 won. This represents a 46% upside to its current price.
2026 High Conviction – Japan’s Triple Play: How PBR Reform, AI, and Banks Unlock Alpha
- Sustained pressure from the JPX initiative targeting firms trading below P/B is forcing enhanced capital returns (buybacks and dividends), creating opportunity across both indices.
- BoJ’s shift to a positive rate environment is fundamentally restoring Net Interest Income and profitability to the Financials sector, positioning the TOPIX, in particular, for outperformance.
- AI/Tech Sector Dominance: The Nikkei 225 is driven by high-tech firms. This concentration, led by high-priced high weighted stocks like Advantest and Softbank Group, provides high-beta AI exposure
Meesho Ltd IPO- Watch Out for Impairment Allowance
- Meesho (1546271D IN)‘s INR 52.4 bn IPO is currently open for subscription. It consists of fresh issue worth INR 42.5 bn and OFS component worth INR 11.7 bn
- The company is India’s largest E-Com platforms in terms of placed orders and user base, and make its mark in the value segment, offering mostly unbranded and regional branded products.
- While KPIs signal growth and operational efficiencies, Meesho is still a loss maker. It has high litigation risk and seeing rapid increase in impairments and write offs with receivables
Meesho Ltd IPO – Value-Led Play, Moderately Priced
- Meesho (1546271D IN) is looking to raise around US$607m in its upcoming India IPO.
- Meesho is an e-commerce marketplace, offering a wide assortment of products ranging from low cost unbranded products, regional and national brands at affordable prices to consumers.
- In our earlier notes, we have looked at the company’s past performance earlier. In this note, we talk about the implied valuations in the price range.
NVIDIA Invests $2 Billion In Synopsys. But Why?
- NVIDIA & Synopsys announced a new strategic partnership on Dec 1, mostly covering topics they were already strategically partnering on, with one exception, Cloud-Ready Solutions
- The partnership sees NVIDIA purchase $2 billion worth of Synopsys stock in a private placement. Other, recent, similar strategic partnerships e.g. Siemens & GM, involved no such investment
- They plan to start enabling cloud access for GPU-accelerated engineering solutions. Could this be where that $2 billion finds a home? Is this a new Neocloud in disguise? Let’s see
Meesho’s Valmo | Erosion of Delhivery’s Margins
- Delhivery (DELHIVER IN) faces immediate volume erosion as Meesho (1546271D IN) migrates 65% of orders to Valmo, destabilizing a key client relationship historically contributing ~16% of total revenue.
- Valmo’s rise structurally shrinks the addressable 3PL market, creating a permanent headwind that compresses pricing power and intensifies competition for remaining open volumes.
- Anchor client insourcing caps Delhivery’s growth trajectory, rendering the Ecom Express acquisition insufficient to offset the structural decay in organic B2C volume velocity.
Geechs (7060 Jp) – Q2 Follow-Up: November 28, 2025
- On November 13, Geechs Inc. (hereafter, “the Company”) announced its Q2 FY2026/3 (Jul-Sep) earnings results.
- Net sales rose 2.5% YoY to JPY 6,518 mn, EBITDA rose 86% YoY to JPY 278 mn, and operating profit rose 124.9% YoY to JPY 253 mn.
- In addition to steady expansion of the core Japan IT Human Resources Matching Business (hereafter, “Japan IT HRM Biz”), faster-than-expected profitability in the IT Human Resources Matching Business, Overseas (hereafter, “Overseas IT HRM Biz”) and stronger-than-planned growth in the Seed Tech business contributed to results.
Meesho:Data Science Workhorse;Fast Evolving—Venturing into Financial Services & Other AI Investments
- In this insight, we highlight why Meesho (1546271D IN) is a data science workhorse masquerading as an E-Commerce Platform
- We discuss about the various advancements made by the company towards AL/ML models which are difficult to replicate.
- Finally, we discuss our view on future prospects and valuation of the company.
Telecom 3Q25: Stronger Margins and a More Constructive Outlook
- We upgrade Telecom Argentina to Overweight as the TMA acquisition strengthens its market position, supports operating momentum, and benefits from reduced political risk and improving macro stability.
- Regulatory uncertainty remains meaningful, and we think clearer visibility on the Telefónica approval process and integration timeline will be critical for value realization and credit performance.
- • We see more value in the TEOAR 2031s given their lower duration, attractive relative spreads versus the EM B Index and peers, and supportive operating trends despite weak liquidity.
C3.ai, Inc. – IPDs and the Gross Margin Squeeze
- In-line 2QFY26 revenue and EBIT beat on cost controls, but gross margin pressure from IPDs.
- 2QFY26 revenue of $75.1 million was essentially on target and cost controls drove a better-than-expected bottom line with EBIT of ($42 million) [Street = ($52 million)].
- However, non-GAAP gross margin was 54.5%, up 280 bps but more than 300 bps below Street expectations.
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