In today’s briefing:
- SK Square: Time to Take Profits + Why Are There Holdco Discounts in the First Place?
- TSMC June Revenue Down 17.7% Mom. What Gives?
- OneConnect (6638 HK/OCFT US): Ping An’s Offer Gets The Nod From SAMR
- KOSPI Size Indices: Overlaps Between Active & Passive Flows
- PC 2Q25: 6-7% Unit Growth YoY Is Pretty Good. 2025 Looks like a 5-6% Growth Year
- Indra Sistemas: Initiation of Coverage- Is This Underrated Tech Powerhouse Europe’s Next Big Defense Bet?
- Shift Inc (3697 JP): Q3 FY08/25 flash update
- TPG Telecom Ltd – The Overnight Report: Trump Cheers Record Highs
- WingArc1st Inc (4432 JP): Q1 FY02/26 flash update
- Quartix Holdings plc – Hybridan Small Cap Feast: 03/07/2025
SK Square: Time to Take Profits + Why Are There Holdco Discounts in the First Place?
- We are changing our View on SK Square (402340 KS) to Negative.
- The major reason for this change is due to the surge in its share price along with lack of upside relative to its NAV.
- Regarding SK Square, our holdco discount remains 40%. However, if there are real, positive continued efforts to improve corporate governance, this holdco discount could be reduced further.
TSMC June Revenue Down 17.7% Mom. What Gives?
- TSMC today reported June 2025 revenues of NT$263.71 billion, a decrease of 17.7 % MoM but an increase of 26.9% YoY
- At the guided exchange rate of 32.5, TSMC’s Q225 revenue amounts to $28.7 billion, up 12.2% QoQ and up 37.6% YoY, but roughly $100 million below the guided midpoint
- However, if we take today’s exchange rate of 29.24, Q225 revenue comes in at $31.9 billion, way above the guide. Take your pick & let’s see this day next week
OneConnect (6638 HK/OCFT US): Ping An’s Offer Gets The Nod From SAMR
- On the 15th May, dual-listed Oneconnect (6638 HK/OFT US), a digital retail banking/commercial banking/digital insurance play, announced a firm Scheme Offer from Ping An, OneConnect’s controlling shareholder.
- Ping An is offering HK$2.068/share, or US$7.98/ADS, a 72.33% premium to last close, and a 131.66% premium to the 30-day average. Net cash is, however, ~HK$1.83/share. The price is final.
- SAMR has now signed off on the deal, satisfying the pre-condition. We await directions from the Cayman court on timing. I’m estimating late-September payment. Should the deal get up.
KOSPI Size Indices: Overlaps Between Active & Passive Flows
- The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August.
- Nearing halfway in the review period, we forecast 53 migrating stocks. Among new listings, 1 stock could be added to LargeCap, 3 to MidCap and 1 to SmallCap.
- Two potential downward migrations could be deleted from a global index in August. The new listing that is a potential LargeCap add could be added to a globalindex in September.
PC 2Q25: 6-7% Unit Growth YoY Is Pretty Good. 2025 Looks like a 5-6% Growth Year
- Consumer demand remains slow but Enterprises are upgrading to Windows 11. Low risk of tariff distortion: 1Q was too high in the US but 2Q has slowed down.
- 2Q25 highest YoY growth: Apple (22%), Asus (17%), Lenovo (16%). Others are flat. Enterprise growth also implies higher ASP and margins for PC and CPU vendors.
- On the CPU side, AMD share gains have slowed in PC, accelerated in Server. Given their roadmap, AMD should keep gaining slowly, Intel defending with difficulty.
Indra Sistemas: Initiation of Coverage- Is This Underrated Tech Powerhouse Europe’s Next Big Defense Bet?
- Indra Sistemas S.A. showcased a mixed yet promising performance in its recent quarterly earnings report.
- The company demonstrated resilience and growth in several strategic areas amidst a favorable market environment driven by increased defense budgets in Spain and broader Europe.
- Key financial metrics such as backlog, order intake, and income displayed notable increases, signaling robust future order flow and operational momentum.
Shift Inc (3697 JP): Q3 FY08/25 flash update
- In cumulative Q3 FY08/25, the company reported sales of JPY95.4bn, gross profit of JPY33.0bn, and operating profit of JPY11.9bn.
- Software Testing Related Services segment sales reached JPY61.9bn, with gross profit at JPY22.8bn and operating profit at JPY16.2bn.
- The revised full-year forecast for FY08/25 anticipates sales of JPY130.0bn and operating profit of JPY15.0bn.
TPG Telecom Ltd – The Overnight Report: Trump Cheers Record Highs
- A global perspective on what happened overnight
WingArc1st Inc (4432 JP): Q1 FY02/26 flash update
- FY02/26 revenue was JPY7.3bn (+2.7% YoY), with operating profit at JPY2.1bn (-13.1% YoY) and EBITDA JPY2.5bn (-10.6% YoY).
- Q1 FY02/26 BDS sales revenue rose 3.1% YoY to JPY4.8bn, while DE business revenue increased 2.1% YoY to JPY2.5bn.
- WingArc1st revised FY02/26 forecast projects revenue of JPY31.2bn (+8.7% YoY) and operating profit of JPY9.0bn (+8.9% YoY).
Quartix Holdings plc – Hybridan Small Cap Feast: 03/07/2025
- * A corporate client of Hybridan LLP.
- ** Potential means Intention to Float (ITF) or similar announcement has been made.
- ***Arranged by type of listing and date of announcement.
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