Equity Bottom-Up Archives | Page 10 of 222 | Smartkarma

• Genic is a turnaround story. Genic is one of the largest ODM companies that make beauty face masks in Korea. 
• Genic is one of the biggest suppliers of hydrogel based face masks of the Biodance brand which has been experiencing an excellent demand in global markets, including the United States. 
• Despite surging growth in sales and profits, valuation multiples remain reasonable. It is trading at EV/EBITDA of 12.7x and P/E of 14.2x, based on recent prices and LTM financials. 

• Ibiden is transitioning from a cyclical electronics supplier to a core AI infrastructure enabler, with Nvidia-linked package substrates at the heart of its growth strategy.
• Management expects AI substrate demand to nearly double in FY25 and is targeting a 150% production increase by 2027, underpinned by the Ono plant ramp from next month.
• Despite ~18–19% EPS/EBITDA CAGR through FY27 and margins comparable to high-premium peers, Ibiden still trades at mid-tier multiples (21× forward P/E, ~6× EV/EBITDA), leaving scope for re-rating.

• Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.
• Highlights: Currently eight pair trade opportunities across four markets and four sectors persist.
• Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.

• Generac Holdings, Inc., in its second quarter of 2025 earnings call, reported net sales of $1.06 billion, marking a 6% increase compared to the prior year.
• The growth was driven by a rise in commercial and industrial (C&I) product sales and residential energy storage system shipments.
• Residential product sales increased by 7% due to notable growth in residential energy technology solutions and portable generators.

• Context: The National Australia Bank (NAB AU) vs. VanEck Australian Banks ETF (MVB AU) price-ratio has deviated more than two standard deviations from its one-year average.
• Highlights: The dislocation highlights the recent outperformance of NAB vs. some of its peers, pointing to a potential underweight in a portfolio context.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• FedEx Corporation recently announced its first-quarter results for fiscal 2026, presenting a mixed bag of positives and challenges.
• On the revenue side, the company showed a 3% year-over-year increase, primarily driven by strength in the U.S. domestic package services.
• Despite this growth in revenue, FedEx faces continuing headwinds from global trade uncertainties and the expiration of a significant contract with the U.S. Postal Service, which together posed a notable financial impact.

• Intel is suddenly at the center of a high-stakes drama.
• Just this month, the Trump administration reversed its public criticism of CEO Lip Bu Tan—who had been accused of being “conflicted” due to his past China ties—and moved into “constructive discussions” about a possible government equity stake in the company .
• That shift followed a White House meeting that apparently reset the tone, with Trump calling Tan’s journey “amazing” after once demanding his resignation .

• The latest Fed’s rate cut will directly impact the US residential market.   With 2 more rate cuts expected in 2025, it will unlock a new cycle for homebuilders
• D.R. Horton is the strongest and most resilient player among the US homebuilders.   We think it is well positioned to capture the tailwind from the interest rate cut cycle
• D.R. Horton also demonstrates strong capital management, increasing its dividend and established a share repurchase program over the years

• Concerted rate increase on Sept 1 failed, deep sea rates are still falling
• Carrier revenues in July-August down ~40% Y/Y, W Coast volumes weak
• We retain our -ive view on container shipping, seek opportunities to Short

• Expansive Exploration Ventures in Northern Chile Southern Copper is currently engrossed in a meticulous ground study of its Especularita copper-gold project, located within the metallic-rich coastal belt of northern Chile.
• Spread across 19,076 hectares, the Especularita project encompasses both exploration and mining ventures, either granted or in the process of being so.
• The firm further boasts rights to potentially secure full ownership of the project.

• At current valuation level, leading biotech listed in Hong Kong have generally “overdrawn” their performance for the next 1 to 3 years. So, it is time to consider taking profits.
• TransThera’s shares have been highly volatile following their inclusion in several innovative-drug ETFs. We analyzed the drivers behind this move. With valuation now diverging from fundamentals, we advise caution.
• The fluctuations of Duality’s shares were driven by the inclusion of HSCI. However, some funds chose to take profits at high stock prices, thus Duality is under pressure of correction.

• IPO leaves upside on the table: Priced at HK$71.6/sh (~US$24.1bn EV), Zijin Gold lists at ~8× 2026E EV/EBITDA — in line with peers despite offering far stronger growth.
• Fastest-Growing gold major challenger: Output set to rise ~20% CAGR to 2027E (2.1Moz), versus flat-to-low growth for Newmont, Barrick, and peers.
• Fair value HK$95/sh (+33%): Base case target on 2026E EBITDA at 8× peer multiple; risks include gold price volatility, execution of Wassa/Sepon/Raygorodok ramps, and governance overhangs.

• NVIDIA will invest $5 billion in Intel’s common stock at a purchase price of $23.28 per share
• Intel will supply custom x86 server CPUs to NVIDIA, who in turn will sell RTX graphics cores to Intel to combine into an new type SOC for the PC market 
• Under sustained questioning during the Q&A, Jensen did a remarkable marketing pitch for TSMC, drowning any hopes of a looming Intel Foundry deal for the foreseeable future

• Jumia, dubbed the “Amazon of Africa,” had a highly anticipated IPO in April 2019 but has not met expectations since listing
• The company aimed to revolutionize e-commerce in Africa but has faced challenges in profitability and implementing Western business models
• Despite initial hype and investments from blue chip firms, Jumia’s struggles serve as a cautionary tale about transposing Western ideas onto the African continent

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• UiPath’s second-quarter fiscal 2026 financial performance reflects a mix of positive results and challenges.
• The company exceeded the high end of its guidance across key financial metrics, indicating robust execution.
• With an annual recurring revenue (ARR) increase of 11% to $1.723 billion and revenue growth to $362 million, UiPath illustrates strong market demand and operational efficiency.

• Meta Platforms has taken another bold step in its augmented reality (AR) journey with the announcement of its $800 Ray-Ban smart glasses featuring a built-in display, gesture-based control via a Neural Band wristband, and AI integration.
• Unveiled at its September 2025 Connect conference, these glasses aim to transition the market from novelty wearables to daily-use smart devices.
• With over 2 million units of the prior Ray-Ban model sold since 2023, Meta is pushing hard to capitalize on its dominant 60% market share in smart glasses.

• MegaChem reported mixed financial results for 1H2025. 
• The Group’s 1HFY25 revenue declined slightly by 1.7% YoY to S$64.1 million, while gross profit improved 3.6% YoY to S$16.1 million.
• The Group’s overall gross margin increased from 23.8% in 1HFY24 to 25.1% in 1HFY25. 

• IonQ has emerged as one of the most ambitious players in the quantum computing space, recently doubling down on both compute and networking strategies.
• Its Q2 2025 earnings call showcased a slew of high-profile announcements, including the strategic acquisition of Capella, formation of a Quantum Networking division, and a landmark $1 billion investment from Susquehanna.
• But even more intriguing are IonQ’s acquisition plans: the company has already announced the planned acquisition of Oxford Ionics and is reportedly in talks with Vector Atomic.

• Hanwha Aerospace has scaled into Asia’s top defense prime, with Land Systems (K9, Chunmoo, Redback) driving >30% OP margins and consolidated revenues compounding ~30% annually.
• A ₩31.7 tn orderbook (~4x sales) anchored in Poland, Australia, and Romania underpins multi-year growth visibility, with Ocean adding LNG/naval scale and Systems providing electronics integration.
• Hanwha trades in line with peers (~19× P/E, ~16× EV/EBITDA); upside hinges on backlog execution, while governance and ESG risks cap multiples.

• For the first time in more than two decades, GE Aerospace has reclaimed an all-time high, marking a milestone that investors had nearly written off.
• On September 17, 2025, shares of GE Aerospace closed at $292.97 after touching $294.74 intraday, breaking past the prior record set in August 2000.
• The stock’s rally has been nothing short of dramatic, climbing about 72% year-to-date and beating the S&P 500 by roughly 84 percentage points, largely on the back of surging commercial jet demand.

• Broadcom Inc.’s recent financial results reflect significant developments within the technological landscape, with notable growth, strategic advancements, and some areas of slow recovery.
• Positively, Broadcom reported a substantial increase in revenue for its third quarter of fiscal year 2025, achieving a record $16 billion, a 22% rise year-on-year.
• This growth was propelled primarily by the strength of its AI semiconductor business and continuing expansion with VMware.

• China’s analog chip probe and revived Nvidia antitrust case are part of a deeper strategy to force foreign tech out of its supply chain.
• Nvidia’s China-only B40 flops, with buyers preferring grey market alternatives. Meanwhile, Domestic chipmakers like Novosense and SG Micro have rallied sharply as procurement tilts inward.
• If Beijing blocks Nvidia’s B30A next, it could mark a full commercial exit. U.S. peers like TXN, AMD, and Synopsys may also not be far behind.

• Nvidia takes a $5B stake in Intel and will co-develop custom x86 CPUs for data centers and RTX-integrated SoCs for PCs.
• The phrasing of “fusion of two world-class platforms” signals ambitions beyond just product collaboration. 
• Intel shares surged +30% on the news, while AMD and Arm slumped; toolmakers like ASML and Synopsys rallied on expectations of fresh CapEx.

• Northern Arc is fast shifting toward direct retail Lending (D2C), while leveraging originator partnerships and technology; recent rate cuts and regulatory relief are improving cost of funds & capital efficiency.
• Northern Arc’s mix of structured finance, co-lending, and fund management creates steady fee income, making it more resilient than traditional NBFCs relying mainly on heavy lending assets.
• Northern Arc is a differentiated NBFC benefits from inclusion & fintech growth, but valuation relies on retail execution, risk control, and asset quality pressures.

• ZIM Integrated Shipping Services reported its second quarter 2025 financial results during a period characterized by severe market disruptions primarily due to tariff changes in the U.S.
• Despite these challenges, the company leveraged its modernized fleet and improved cost structure to generate revenue of $1.6 billion, a net income of $24 million, and an adjusted EBITDA of $472 million.
• The adjusted EBITDA margin stood at 29%, while the adjusted EBIT margin came in at 9%.

• GE Vernova, a recent spin-off from General Electric, has seen its stock skyrocket nearly 5x since its separation in April 2024.
• With the company now trading around $628 and an analyst target pushing it to $740, investor enthusiasm is boiling over.
• The latest catalyst?

Key points (machine generated)

• Pitney Bowes is trading at approximately 5x free cash flow after appointing Kurt Wolf as CEO.
• The company has transformed from a distressed credit to a cash-generating entity with growth catalysts like increased share repurchases.
• Despite positive changes, the stock is undervalued with a 20% levered FCF yield, indicating potential for both short-term and long-term growth.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• After sinking to 10-year lows in January,  Health And Happiness (H&H) ’s stock has rebounded more than 75%, raising the question of whether operations are finally turning the corner.
• With signs of stabilizing growth and improving returns across product categories, 1H2025 results seem to signal the end of years of investor agony.
• Nutritional supplements now contribute to 65% of H&H’s revenue – Swisse’s strong positioning in the fast-growing anti-aging category underpins future growth.

• The Fed announced a 25bps rate cut, which is largely anticipated by the market.  The SEP median estimate indicates 2 more cuts in 2025
• Regarding HK policy address, there are no meaningful positive surprise related to the property market.  It highlights the importance of Northern Metropolis development, and improving home ownership, and talent admission
• Investors should see-through these and focus on big picture: macro developments, monetary policy, and sector fundamentals.  Pick company with attractive valuation and catalysts: NWD, Link REIT, CICT, COLI, VNET, GDS

• The geopolitical tech battle between the U.S. and China has taken a sharp turn—and Nvidia is now squarely in the crosshairs.
• In a significant escalation, China’s State Administration for Market Regulation has launched an antitrust probe against Nvidia, claiming the chipmaker violated monopoly laws during its $7 billion acquisition of Israeli firm Mellanox Technologies.
• The regulator’s preliminary findings come at a delicate moment as U.S. and Chinese officials wrap up high-stakes trade talks in Madrid.

• The race toward quantum advantage is entering its most critical phase, and IBM has quietly positioned itself as the frontrunner in a highly competitive field dominated by tech giants like Google, Microsoft, and Amazon.
• In its Q2 2025 earnings call, IBM confirmed a major milestone: the deployment of IBM Quantum System Two in Japan, the first such system outside the United States.
• This isn’t just a milestone in hardware—it signals IBM’s intent to establish global leadership in quantum computing infrastructure.

• China gold jewelry demand slumped in 2Q2025, while investment demand for coins and bars remained resilient amidst rise in gold prices, according to data released by China Gold Association.
• If gold rally continues, Chow Tai Fook Jewellery (1929 HK) faces heightened demand growth risk due to reliance on the competitive, price-sensitive, consumption-driven jewellery segment.
• Chow Tai Fook’s 140% YTD rally reflects optimism on branding-driven earnings growth, but stretched valuations overlook downside risks to growth if gold prices keep rising.

• Context: The Alibaba (9988 HK) / Hang Seng Index (HSI INDEX) price-ratio deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long the Hang Seng Index and short Alibaba (9988 HK) targets a 12% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Ciena Corporation delivered strong results in its fiscal third quarter of 2025, showcasing significant top-line growth and improved profitability metrics.
• The company reported revenues of $1.22 billion, outpacing the high end of its guidance and representing a 30% increase year-over-year.
• The gains were driven by broad-based demand, particularly from cloud providers and service providers, with reported strong orders setting a new quarterly record for Ciena.

• A financial group backed by Alibaba Group founder Jack Ma has made a major foray into digital assets, investing $44 million to acquire 10,000 units of Ether, the native token of the Ethereum blockchain.
• Yunfeng Financial Group Ltd., a Hong Kong-listed company in which Ma holds an 11.15% stake, disclosed the acquisition in a regulatory filing Tuesday. The company said it purchased the Ether on the open market using internal cash and would classify the asset as a long-term investment on its financial books.
• The purchase marks a growing trend of publicly traded companies adding cryptocurrencies to their balance sheets, a strategy known on Wall Street as digital asset treasury, or DAT.

• Rubrik’s recent quarterly performance showcased a notable blend of robust growth and strategic initiatives, presenting both opportunities and challenges for investors.
• Key positives highlighted in the earnings call include impressive top-line growth and strong financial metrics.
• The company reported a 36% year-over-year increase in subscription Annual Recurring Revenue (ARR), reaching over $1.25 billion.

• Samsara Inc. has demonstrated considerable growth in the second quarter of fiscal 2026, with key financial metrics reflecting the company’s strong market position and strategic direction.
• The company reported an Annual Recurring Revenue (ARR) of $1.6 billion, representing a 30% year-over-year increase.
• Notably, customers contributing over $100,000 in ARR accounted for nearly $1 billion, growing by 35% from the previous year.

• Sprinklr, a company specializing in customer experience management software, reported $212 million in total revenue for the second quarter of fiscal year 2026, marking an 8% year-over-year growth.
• Subscription revenue accounted for $188.5 million, reflecting a 6% increase.
• The company achieved a record $38.2 million in nonGAAP operating income, resulting in an 18% operating margin, indicating improved cost management.

• Docusign continues to demonstrate resilience and innovation as evidenced in its Q2 Fiscal 2026 performance.
• Revenue reached $801 million, marking a 9% year-over-year growth, with billings up by 13% year-over-year to $818 million.
• The company’s strategic focus on platform innovation, particularly through its AI-native Docusign Intelligent Agreement Management (IAM) platform, has contributed positively to this growth.

• GitLab’s second quarter of fiscal year 2026 results highlight both achievements and challenges for the company.
• The company experienced a significant revenue growth of 29% year-over-year, reaching $236 million, demonstrating strong demand for its AI-native DevSecOps platform.
• Additionally, GitLab reported an impressive non-GAAP operating margin of 17%, reflecting effective cost management and operational efficiency.

• Chewy’s latest financial performance in the second quarter of fiscal year 2025 showcased solid growth, with net sales increasing by approximately 9% year-over-year to $3.1 billion, surpassing the upper end of the company’s guidance range.
• This growth is particularly noteworthy in a market environment characterized by low to midsingle-digit industry growth, highlighting Chewy’s ability to capture market share.
• The company’s Autoship program, especially in consumables and health categories, played a significant role, generating $2.58 billion in customer sales and constituting 83% of total sales for the quarter.

• Toto stock price -16% over past year vs index +24% as China growth story collapses. Restructuring China ops; targeting breakeven FY3/27
• New growth drivers: US capacity buildout underpins Americas sales growth, while electrostatic chucks beneficiary of SPE spend
• Stock trading at 30% discount to historical average and deep discount to global peers

• The Singapore’s interest rate, 3M SORA, has declined steeply from 3.034% in January to 1.563% in September
• The steep decline in interest rate will directly benefit S-REITs, through reduced borrow cost, more attractive valuation, as well as stabilizing cap rates to support book valuation
• Among S-REITs, we think CICT SP, with its portfolio mostly Singapore assets, will benefit the most from this structural trend

• Indegene is shifting from transactional work to large-scale, transformative “Tectonic” deals, securing over US$1 million from two paid pilots in Q1 FY26.
• This pivot moves the company up the value chain, creating a durable competitive moat and positioning it as a strategic partner, not just a vendor.
• Indegene’s strong balance sheet and focused M&A strategy will likely accelerate this high-value growth, cementing its role as a key player in pharma’s digital future.

• Shares of Kenvue Inc., maker of Tylenol, dropped roughly 10% in early September 2025 after media reports—primarily from The Wall Street Journal—indicated that U.S. Health Secretary Robert F.
• Kennedy Jr. will release a forthcoming HHS report that likely links prenatal use of acetaminophen (Tylenol’s active ingredient) to autism.
• This decline followed investor concern over what such a regulatory conclusion could mean for Kenvue’s reputation, sales, litigation exposure, and overall risk profile.

• While Rubrik reported all key operating metrics and cash flow above expectations for 2Q’FY26, shares sold off over 10% on heavy volume.
• +35% y/y 3Q’FY26/+25% y/y 4Q’FY26 revenue growth guide raises questions about next FY27, in my view. Rubrik stock continues to trade at a premium valuation.  
• Given the trends in the quarter and guidance, I believe the cybersecurity company can achieve and sustain 25%+ y/y revenue growth in FY26, FY27 and FY28.

• Buy Case: ~20% CAGR growth to 2027E, SOE backing, and potential index inclusion make Zijin the fastest-growing gold producer globally.
• Sell Case: At $40bn, Zijin trades at major-level multiples with mid-tier reserve depth, raising questions on sustainability.
• Swing Factor: Gold price trajectory and flawless execution in Ghana, Laos, and Kazakhstan will determine if the IPO clears closer to the low or high end of the range.

• Funding not a hurdle: Promoter strength provides comfort despite past negative precedents.
• Valuation undemanding: Entry at ~US$440–475/t is below replacement cost and past cycle-peak deals.
• Execution heavy: Success depends on managing restructuring, integration, and EU policy commitments.

• Wells Fargo & Company, in its second quarter of 2025 results, showcased a balanced mix of progression in growth strategies and sustained financial discipline.
• The net income of $5.5 billion, translating to $1.60 per diluted share, was an improvement from both the previous quarter and the same period last year.
• This growth indicates consistent execution amidst a transitioning phase post asset cap removal.

• Bank of America Corporation reported robust second-quarter results that highlight strong organic growth across its varied business segments.
• The bank saw a 4% year-over-year increase in revenue, reaching $26.6 billion, alongside a 7% growth in net income to $7.1 billion.
• Earnings per share increased by 7%, reflecting effective cost management and growth strategies.

• Starlink’s Direct-to-Phone Semiconductor Integration Push Signals a Major Shift Coming for Telecom
• Direct-To-Satellite Connectivity Could Become Critical for a Market-Competitive Smartphone SoC Design
• Leadership in Satellite Connectivity Will Soon Mean Leadership in Smartphone SoCs

• More than eight years have passed since Chairman Chey first filed for a divorce from this wife Roh So-young in July 2017.
• This divorce case has finally reached the Supreme Court of Korea. Although the final outcome still remains unknown, it appears that this divorce case is finally coming to an end. 
• We also provide an NAV analysis of SK Inc. Our NAV valuation of SK Inc suggests implied market cap of 24.1 trillion won which is 42% higher than current levels.

• Alibaba Group is back in the spotlight after unveiling a trifecta of high-profile moves that have reignited investor interest and sent its shares sharply higher.
• The Chinese tech conglomerate raised $3.2 billion through the issuance of zero-coupon convertible bonds due 2032, a financing round earmarked for strengthening its AI and cloud infrastructure.
• At the same time, reports surfaced that Alibaba is beginning to deploy in-house AI training chips, reducing reliance on Nvidia’s costly accelerators and signaling a shift toward technological sovereignty in the middle of China’s broader AI race.

• Nisshinbo is aiming for a radical transformation from old-fashioned textile business to high-tech, aiming for 80% revenue from defense and high-end tech within 3-5 years 
• New President Yasuji Ishii promises swift decision-making and a comprehensive restructuring plan by February 2026, targeting 10% RoE, up from a 8% deficit at the trough.
• Nisshinbo trades at 70% of book value but should easily trade up to 1.5x if it achieves its Roe target.

• 55% market share in Singapore bus market. SBS runs 3 train lines.
• The company has only one customer which is LTA and does not have much pricing power
• The company is asset light and has lots of cash on its books.

• Resonac continues to reshape its portfolio, scaling growth materials while rationalising legacy chemicals and electrodes.
• FY2025 guidance appears conservative, particularly on profit, leaving room for upside if current momentum is sustained.
• Valuation & risk: Shares trade at a discount to global peers, with re-rating potential contingent on execution and balance sheet discipline.

• High Growth: ~80% production increase (36t to 65t, 2024–27E) via Buriticá, Aurora, Porgera, Central Asia.
• Valuation: Filing suggests US$12–16bn (US$3–4bn raise, 6–7.5× EV/EBITDA); market eyes US$30–40bn.
• Key Dynamics: SOE-backed expansion; risks in EM execution and AISC (~US$1,350/oz by 2027E).

• We will be putting products on TSMC you know, forever, really. TSMC is a great partner for us. Obviously everyone understands that their support and technology are great. 
• 18A is actually a good node for us. We want to milk that node  We won’t get peak volume on 18A until the 2030 timeframe.
• Kevork Kechichian joined Intel as head of the Data Center Group. He will lead Intel’s data center business across cloud and enterprise, including the Intel Xeon processor family

Key points (machine generated)

• The article highlights Potbelly (PBPB) as a promising investment opportunity in the fast-casual restaurant sector.
• Under CEO Bob Wright, Potbelly has made operational improvements leading to increased average-unit volumes and profit margins.
• The author believes Potbelly is shifting from a turnaround story to a growth stock, with potential for shares to double.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Our focus on earnings delivery continues, this time turning to ASEAN. We screen stocks with consistent EPS estimate upgrades, strong EPS growth forecasts, net debt/equity below 1 and PEG<1.3x.
• In the six ASEAN markets, 10 stocks satisfy our criteria – four from Vietnam, two each from Indonesia and Thailand and one each from Singapore and Malaysia.
• Nine of the ten stocks appreciated sharply over the past 3 and 6 months. Over the past 12 months 7 stocks appreciated and three declined.

• Thunderbird Entertainment is a highly illiquid Canadian stock with a market cap of $75 million CAD, traded at low volumes.
• Sofon Capital Research is interested in microcap companies like Thunderbird, defining them as high quality businesses at fair to great prices.
• Thunderbird is considered a very good business at an outstanding price, trading at less than 2x next 12 months EBITDA, making it an attractive investment opportunity.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• More than $1 billion to be invested in electric power equipment and railway car production, plus a new automation center, to counter tariffs and support long-term expansion in the U.S.
• The rising share of sales accounted for by smart factory and other digital technologies should lead to higher profit margins and ROIC over the next several years. 
• The share price has dropped 13% from its recent high to 26x EPS guidance for FY Mar-26. Buy on weakness for long-term growth. The main risk is a slowing economy.

• TSMC: +24.4% Premium: Remains at Level to Short the ADR Spread
• ASE: 0.0% (Parity); Open Fresh Longs Here or at a Discount
• ChipMOS: -1.9% Discount; Near Level to Go Long the Spread

• Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.
• Highlights: Currently nine pair trade opportunities across four markets and four sectors persist.
• Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.

• Business: Japan’s largest integrated energy group, ENEOS runs ~45% of national refining capacity, upstream assets, power generation, and holds 42% of JX Advanced Metals.
• Earnings (3Y): OP peaked at ¥504 bn in FY2023 on high oil prices, fell to ¥107 bn in FY2024 on inventory losses, and is guided to ¥300 bn in FY2025.
• Valuation & Risks: Trades at ~8× EV/EBITDA (~¥900/share), above our SOTP fair value (~¥690); key risks include crude volatility, shrinking domestic fuel demand, high leverage, and transition execution.

• Why does Intel Corp (INTC US)’s current CFO state “Intel will use TSMC basically forever”? 
• From Taiwan Semiconductor (TSMC) – ADR (TSM US)’s perspective, they have always maintained a “no competition with customers” principle.  
• Another question remains: who will adopt Intel’s 14A technology in 2027-28?  

• The strong bullish sentiment towards gold has boosted Laopu’s share price, but we still have doubts about whether Laopu can truly benefit from the gold price rally in the future.
• In a crisis, gold stocks will face sell-off. We may see an “interesting phenomenon”- The price of gold commodities is soaring, while gold stocks are performing unsatisfactory or even plummeting.
• In fact, we already witnessed the inconsistency between the gold commodities prices and Laopu’s share price. This is the core logic we recommend investors take profits on Laopu in time.

• Last week at SEMICON, TSMC unveiled COUPE, moving silicon photonics from lab demos into industrial-scale advanced packaging.
• Himax, ASE, Zhen Ding, GlobalWafers, ACON, and Accton form Taiwan’s listed ecosystem for silicon photonics adoption.
• As NVIDIA Corp (NVDA US)-driven AI clusters proliferate, the power and cost of moving data between chips have become as constraining as compute itself.

• India’s spectacular underperformance over the past 12 months relative to Asia has been driven primarily by dismal earnings delivery by corporates, leading to persistent EPS estimate downgrades.
• We identify stocks with strong earnings delivery, i.e. EPS estimate upgrades over past 1, 3 and 6 months, forecast EPS growth >10%, net D/E < 1 and PEG < 1.4x.
• We screen 11 stocks from industrials, healthcare, materials and property. Most have appreciated significantly over 6- and 12-month timeframes, establishing that the market tends to reward superior earnings delivery.

• Strong industry sales of wheel loaders (+10.4% YoY) and excavators (+18.8%) in Jul-Aug suggested that the current consensus earnings forecasts are too conservative. 
• Lonking Holdings (3339 HK) will also benefit from the strength of the equities market, given it has an investment portfolio of Rmb2.4bn, or 18.6% of its market capitalisation.
• Given net cash equalling HK$2.02/share, or 66.1% of its share price, its 10.3x PER and 4.5% dividend yield for FY25F still appear undemanding. 

• Oracle is on a mission to rival the Big Three cloud providers and its cloud ambitions are part of a theme that will determine GDP growth in the US and globally as a whole.
• They are guiding for a 10x revenue increase in cloud computing in just four years which would transform Oracle Cloud from a nobody with 3% market share to a leading player with a business larger than AWS is today.
• Most importantly, this guidance is based on contracted revenue, i.e. revenue that their customers (most importantly OpenAI) basically only can get out by declaring bankruptcy.

• In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the next two weeks (12 to 26 September 2025).
• Our top 10 picks were up on average 7.4% from 29 August to 12 September, outperforming KOSPI which was up 6.6% in the same period.
• Top 10 picks in this bi-weekly include KCC Corp, Nongshim Holdings, KT&G, Paradise, Samsung Life Insurance, Hana Financial, SK Inc, CJ Corp, Lg Chem, and Lotte Tour Development.

• Business Performance – BRMS has delivered explosive revenue and earnings growth, with Citra Palu now producing ~100k oz gold annually at strong margins.
• Plans – The company is expanding with a third plant at Citra Palu in 2025 and developing the Gorontalo copper-gold project for 2027.
• Growth & Valuation – With ~8 Moz in reserves and NAV leverage, BRMS is positioned to double revenues post-2027, though current valuations already embed high expectations.

• Context: The CAR Group (CAR AU) vs. Seek (SEK AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long CAR Group and short Seek targets a 7% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• A review of recent events/data impacting our investment themes and outlook
• Change of mindset needed for HK/China as the bull markets broadens out
• Signs of excess are rife in many global markets, but no top yet signalled.

• New Oriental Education & Technology Group Ltd reported a strong performance in the fourth quarter of its fiscal year 2025, highlighting both positive advancements and some challenges that may impact their future outlook.
• The company announced an 18.7% year-over-year revenue increase, excluding contributions from its East Buy segment, primarily driven by the expansion of new business ventures.
• These ventures include overseas test preparation, which grew by 15%, and adult and university student services, expanding by 17%.

• The Trump administration is considering putting “severe restrictions” on the drugs from China, which would negative for China biotech that mainly relies on licensing-out model. We share our views below.
• The key to assessing the future profitability of innovative drugs in China lies in their ability to control costs, not just in the growth of product sales.
• Sihuan achieved a turnaround and is undervalued. Just “medical aesthetics + cash” worth RMB15.3 billion valuation. The innovative drug business will provide decent upside potential, but with some concerns behind. 

• Context: The Kotak Mahindra Bank (KMB IN) vs. Bajaj Finserv (BJFIN IN) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Kotak Mahindra Bank and short Bajaj Finserv targets a 6% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Infosys Ltd (INFO IN) made headlines in the market after approving share buyback worth INR 180 bn at INR 1800 per share.
• The buyback is the largest in company’s history and represents 2.4% of the paid up capital. 
• However, from the shareholders lens, the buyback would be tax-inefficient, after the regulatory changes which came in effect from Oct 2024.

• K-Pop Demon Hunters (KDH) started streaming on Netflix on 20 June 2025. KDH has become the most watched film on Netflix history, achieving 291.5 million views as of 11 September. 
• Nongshim has a collaboration with Netflix, releasing ramyun and snacks featuring characters from K-Pop Demon Hunters. The sale of these products (especially overseas) are likely to result in higher sales.
• Nongshim has hit a big home run in this collaboration with Netflix and the K-Pop Demon Hunters film. Additional series related to KDH are highly likely. 

• Appointment of a digital-savvy CEO and professionalized board strengthens management, positioning Vadilal for sustained growth and corporate transformation.  
• Robust distribution, innovative production, and premium parlours drive competitive edge and market leadership. 
• Resolution of internal family disputes and promoter group merger streamlines operations, though potential dilution could affect minority shareholders.

• Recent News: CZSPT’s Sep 9 guidance points to imported zinc concentrate treatment charges of US$120-140/dmt for Q4, and Bloomberg confirms Chinese smelters are tightening terms.
• Impact: This rebound in TC/RC levels should lift Korea Zinc’s EBITDA by approximately US$100-135 million, representing a ~5-7% earnings upside over current troughs.
• Valuation: On normalized earnings, Korea Zinc could re-rate to 8–9× EV/EBITDA. At $120–150/dmt TCs, this points to ~20–50% upside, with further headroom if multiples expand alongside earnings recovery.

• Western Digital Corporation reported strong fourth-quarter fiscal 2025 financial results, showcasing increased demand driven chiefly by the data center market, predominantly through hyperscale customers.
• The company generated $2.6 billion in revenue, which constituted a 30% yearly increase, and achieved a non-GAAP gross margin of 41.3%.
• This result was driven by the mix shift toward higher capacity drives and effective cost management.

• Lam Research Corporation’s recent financial performance and strategic direction offer a balanced picture of its current and future potential.
• The company reported impressive results for its June 2025 quarter, with revenues and profitability reaching the upper end of guided ranges.
• Significantly, gross margins exceeded 50% for the first time since the merger with Novellus, and earnings per share hit a new company high.

• Tesla’s recent unveiling of its Megapack 3 and the all-new Megablock could mark a pivotal moment in its shift from being seen purely as a carmaker to a vertically integrated energy company.
• While Tesla’s robotaxi launch and AI developments have dominated headlines, the energy division—specifically industrial battery storage—is quietly becoming a major pillar.
• The Megablock is a fully integrated, utility-scale energy solution, reducing construction costs by 40% and installation times by 23%.

• Old Dominion Freight Line’s recent financial performance reveals both challenges and opportunities.
• Despite a declined revenue in the second quarter of 2025, totaling $1.41 billion, representing a 6.1% decrease from the previous year, the company has managed to sustain yield growth.
• This growth is embodied by a 3.4% increase in less-than-truckload (LTL) revenue per hundredweight, although LTL tons per day fell by 9.3%.

• TAL Education Group reported robust financial performance for the first quarter of fiscal year 2026, showcasing significant revenue growth while managing to improve operational efficiency.
• The company recorded net revenues of $575 million, marking a 38.8% increase year-over-year, with a notable rise in gross margin from 51.7% to 54.9%.
• Operating income improved significantly with TAL turning a previous operating loss into a profit of $14.3 million, demonstrating enhanced operational leverage and cost management.

• Daimler Truck focuses on heavy-duty vehicles but also offers brands for light and medium-duty segments
• The company profits from both truck sales and services, with a focus on improving service offerings
• Market trends for truck sales are closely tied to overall economic performance, with current slow sales attributed to uncertainty in the US and Europe.

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