Equity Bottom-Up Archives | Page 17 of 222 | Smartkarma

• Oasis Management disclosed a 5.2% stake, increasing pressure on Casio to improve capital efficiency and strategic clarity.
• City Index disclosed a 5.1% stake, signalling intent to drive value at Nittoku via capital return and improved governance.
• 3D Investment continue to add to Square Enix position. 3D and Dalton likely to target weak margins, bloated cash, and capital inefficiency – lots to work with.

• Zijin has guided for a 54% YoY rise in H1 FY2025 net profit to RMB 23.2 billion, driven by strong copper and gold pricing and volume gains.
• Based on this, we see scope to revise our FY2025 PAT and EPS estimates up by 16–19%, and EBITDA by 35–50%.
• The proposed listing of Zijin Gold International in Hong Kong could unlock value from its high-margin overseas gold assets and enhance investor visibility.

• For Mediatek Inc (2454 TT)’s 3Q25 outlook, its revenue is expected to decline by approximately 0–6% quarter-over-quarter, reflecting a relative low seasonal factors and order adjustments.  
• Regarding Mediatek Inc (2454 TT)’s partnership with Alphabet (GOOGL US), the TPU v7e is expected to begin tape-out in September 2025.  
• Based on current project developments using TSMC’s 2nm process, MediaTek is highly likely to co-develop the next-generation MTIA v4 ASIC with Meta (META US).

• Volume Data: IEX volumes rose 15% YoY in Q1 FY26, led by strong RTM and Green Market growth.
• Near-Term Outlook: Higher volumes should lift Q1 earnings, with EBITDA and PAT expected to rise ~22%.
• Future Plans: IEX is launching new products like G-RTM and LDCs, and investing in P2P and smart grid tech.

• Orient Overseas International (316 HK)‘s 25.9% YTD surge in share price is difficult to justify, as the load factor started to contract and the average freight rate declined.  
• Transpacific and Asia-Europe freight rates plunged by 14.7% and 17.3% in 2Q25, respectively. The transpacific volume also registered the first YoY decline in the quarter. 
• Its P/B of 0.85x is 1SD above average, and is way higher than FY21-22. However, the FY25F earnings of US$1.5bn are incomparable to US$7-10bn in FY21-22.

• Using SOTP is likely the best way to value COIN going forward as its subscription and services revenue is now more substantial and Circle has just gone public.
• Non-Transaction revenue is being valued at a much higher multiple than transaction revenue. SOTP valuation indicates limited near-term upside from COIN’s current market capitalization.
• Circle’s impact on Coinbase is now twofold: 1) driving its revenue mix shift toward non-transaction revenue; 2) acting as a key benchmark for its non-transaction revenue valuation.

• Wrap of events affecting the market on Friday night and the weekend and a preview of the week ahead

• Provaris Energy Ltd (ASX:PV1) represents a unique investment opportunity as a leveraged play on the growing shift to alternative energy and carbon reduction, particularly in Europe, but applicable on a global basis.
• The keystone to production and growth is the company’s proprietary ‘storage tank’ IP, enabling greater volumes of compressed gases to transport at lower cost (‘more for less’).
• The company holds a material early-mover advantage with a number of strategic partnerships and two hydrogen supply, offtake and shipping agreements expected to become unconditional over the next 12 months.

• Kinatico Ltd (ASX:KYP) is a ‘Know Your People’ regtech company providing workforce compliance monitoring and management technology and services.
• The company has announced that total revenue in Q4 increased 15% to $8.5m, with higher-margin SaaS (Software-as-a-Service) revenue making up 52% of the total, compared with 38% of total Q4 revenue in FY24.
• SaaS revenue grew 57% in the quarter on the previous corresponding period (pcp) to $4.4m and is tracking at $17.5m on an annualised basis.

• Hisamitsu Pharmaceutical Co (4530 JP) Q1FY26 revenue of ¥34.7B down 3% YoY, mainly driven by subdued performance in Salonpas focused OTC pharmaceutical products.
• Rx business revenues grew 7% as Zicthoru, Apohide, Combipatch,Vivelle-Dot etc clocked healthy numbers excepting Mohrus product line.
• Hisamitsu reiterated FY26 guidance expecting revenue to be ¥165B with profits growth expected to decelerate on higher cost.

• Local intel says Samsung’s 1c-based 12-high HBM4 is basically locked in to sample to NVIDIA by end of this month or early next.
• No hard proof Samsung hit 70% yield, but inside chatter’s bullish, internal mood’s upbeat, and that’s what’s driving the local market to chase the 1c HBM4 hype.
• With the Samsung Life Law quietly sidelined in recent reform talks, Samsung seems to have read the room and is now going full throttle on the HBM push.

• AES Corp., a major player in renewable and utility power with deep ties to Big Tech, is now exploring strategic options including a potential sale, according to reports.
• The Arlington, Virginia-based company has caught the eye of infrastructure giants such as Brookfield Asset Management and BlackRock’s Global Infrastructure Partners (GIP) after its stock plummeted nearly 50% over the past two years.
• The stock rebounded sharply—up nearly 20% in a day—amid reports of the takeover interest, bringing its market cap to around $9.4 billion, though its enterprise value still hovers around $40 billion due to high leverage.

• DexCom’s latest earnings and strategy pivot have reignited investor attention as the company recalibrates its focus on the vast, underpenetrated Type 2 diabetes market.
• After suffering a 41% stock drop in July 2024 due to poor execution in its transition away from its traditional Type 1 diabetes stronghold, the company now appears to be correcting course—not by retreating, but by accelerating into the same direction with more refined tactics.
• The first quarter of 2025 showed encouraging signs, including record-breaking new patient additions, expanded insurance coverage from all three major PBMs for non-insulin-dependent patients, and the introduction of Stelo, DexCom’s first over-the-counter CGM.

• Meta Biomed is the number one player in the world for root canal filling materials. It also produces other dental products, including bio-absorbable sutures and cosmetic medical products.
• Six major reasons why we like Meta Biomed include number one player for root canal filling materials, solid sales growth, strong export growth, improving ROE and operating margins, and valuations.
• We are introducing a new section (Major Factors of Business Operations and Valuations) for all our Korea Small Cap Gem Series from now on (see below).

• The company reported sales of JPY7.3bn, operating profit of JPY1.5bn, and net income of JPY940mn, with no YoY data.
• Transitioned to consolidated financial reporting in Q3 FY08/25, adding a Functional Materials segment, primarily operated by KMAC.
• Announced consolidated earnings forecast for FY08/25: sales JPY11.3bn, operating profit JPY1.9bn, and net income JPY1.3bn.

• In a move that could redefine the future of web browsing and digital advertising, OpenAI is reportedly preparing to launch a new AI-powered browser that directly challenges Google Chrome—Alphabet’s flagship browser and a crucial pipeline for search traffic and user data.
• While the browser is still under wraps, reports indicate that it will feature a ChatGPT-like interface where users complete tasks and search queries within the app, bypassing traditional website clicks altogether.
• This launch follows similar innovations by AI search players like Perplexity, and represents OpenAI’s broader ambition to embed its AI across personal and professional user touchpoints.

• The engineering software sector may be heading toward another major shake-up as Autodesk weighs a potential acquisition of Boston-based PTC Inc., according to multiple sources familiar with the discussions.
• With PTC’s market value hovering around $23 billion, a deal of this magnitude could place Autodesk in a stronger competitive stance against industrial software giants like Siemens and Dassault Systèmes.
• While Autodesk has yet to confirm the move publicly, it is reportedly evaluating a cash-and-stock deal, working with advisers to assess the strategic benefits and financial implications.

• ZimVie has recently shifted its strategic focus and has shown committed actions towards becoming a streamlined organization dedicated to the dental industry.
• With the sales of its spine business yielding $375 million, including $350 million in cash and a $60 million promissary note, ZimVie has embarked on a course of debt reduction and refocusing.
• It’s notable that ZimVie used part of the sales proceeds to pay down $275 million of its existing liabilities.

• Evotec SE has provided a comprehensive overview of their financial and operational status for Q1 2024, reflecting mixed results influenced by the current market environment.
• The report reveals a slight revenue decrease of 2% year-over-year, totaling EUR 208.8 million, attributed to a 23% decline in the Shared R&D business, overshadowed by notable advances in the Just – Evotec Biologics segment, which reported a 400% revenue increase compared to Q1 2023.
• This growth primarily stems from collaborations like those with Sandoz and Department of Defense.

• Kazatomprom’s 2024 half-year results reveal a complex landscape of both opportunities and challenges.
• Positively, the company remains a leading force in the uranium sector, leveraging its extensive resources and production capabilities to capitalize on strong market fundamentals driven by increasing global interest in nuclear energy.
• The emphasis on nuclear power as a viable green energy solution has bolstered demand, potentially leading to a significant supply deficit by 2040, which Kazatomprom appears positioned to address with its strategic focus on expanding production and exploration efforts.

• Chinese battery titan Contemporary Amperex Technology Co. Ltd. (CATL) has broken ground on a nearly $6 billion project in Indonesia, marking a bold strategic move to secure crucial materials and expand its manufacturing footprint beyond China.
• The project — a joint venture between CATL subsidiary CBL, Indonesia’s state-owned miner PT Aneka Tambang (Antam), and the state-backed Indonesia Battery Corporation (IBC) — has officially started construction, CATL said Wednesday.
• More than three years in the making, the initiative underscores the ambition of the world’s largest battery manufacturer to reinforce its global standing amid increasingly complex geopolitical dynamics.

• We have found another gem in the Korean small cap industry. Messe ESANG is #39 in our Korea Small Cap Gem Series.
• Messe ESANG (408920 KS) is the number one player in South Korea’s exhibition and convention industry. 
• The company has a combination of strong sales growth, excellent operating margins, improving ROE, sound balance sheet, and cheap valuations. 

• Smartworks, India’s largest managed campus operator, is launching a INR 582.56 crore IPO, combining fresh issue and OFS to fund expansion and reduce debt. 
• Smartworks shows strong growth in operational metrics and high occupancy underline rising demand, but consistent losses, high debt, and client concentration remain key concerns. 
• While the industry outlook is robust, the success depends on Smartworks achieving profitability, managing risk, and sustaining client retention in a competitive market.

• A brief look at important company events and economic data releases next week

• Patek Philippe is a premier watchmaker with a rich history and unmatched craftsmanship
• The brand is differentiated from others like Rolex by its exclusivity, handmade quality, and tradition of creating the finest watches in the world
• John Reardon from Collectability provides insights into what makes Patek Philippe a special and highly sought-after brand

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

• Banco Santander’s third-quarter financial results for 2023 demonstrate a mixed performance, albeit with solid progress in executing its long-term strategy.
• The company recorded a quarterly profit of EUR 3.3 billion, marking a 12% year-over-year increase, driven by a customer base that has expanded to 171 million.
• For the first nine months of the year, the bank achieved a record profit of EUR 9.3 billion, up 14%.

• Sales increased by JPY985mn (+7.7% YoY) with growth in Creative (Japan), Medical, and CRES segments; operating profit rose by JPY159mn (+12.7% YoY).
• Progress toward FY02/26 forecast: 23.1% for sales, 28.4% for operating profit, 28.1% for recurring profit, 28.6% for net income.
• CRES segment sales rose 205.0% YoY to JPY23mn, but recorded an operating loss of JPY41mn.

• Markel Group’s recent financial performance presents a nuanced picture of its strategic initiatives and operational dynamics.
• On the positive side, the company has demonstrated resilience in its various business segments, showing strong potential for sustainable growth.
• Markel’s comprehensive approach to capital allocation has been characterized by strategic investments and share repurchase activities, which are expected to yield favorable returns over the long term.

• Novonesis has delivered a robust performance in the first quarter of 2025, highlighted by an 11% organic sales growth.
• This includes a 10% growth driven by volume and an additional 1% from pricing.
• The company has shown widespread geographic stability with emerging markets experiencing a substantial 15% growth, while developed markets reported a 9% increase.

• We are reiterating our Buy rating, projections and $22.50 price target for Betterware de Mexico as we look at key trends for 2HFY25 and beyond.
• We believe BWMX has remained weak in 2025 (down 14% YTD) as worries remain over the health of the Mexican consumer and a material 1Q25 miss, which also resulted in a 20% cut in the annual dividend rate.
• While management maintained the 2025 annual guidance, we believe the Street is already projecting the company will have to reduce overall guidance.

• 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.   

• A foreign short seller has released its short thesis note on Vedanta Group, labelling the group as a Ponzi scheme. 
• The report’s central assertion is ‘to repay the debt of holding company Vedanta Resources, Vedanta Limited paid aggressive dividends leading to depletion of financial & operational strength of Vedanta
• Dividend & delisting along with share purchases funded through debt, unreconciled interest, and depleting asset base, stagnancy in expansion plans.

• 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

• Crizac has had a successful IPO, pricing at 28x PE. 
• Before any aftermarket premium, the company is already at a significant valuation premium to other global education stocks.
• CRIZ has too many risks to justify a high rating. 95% of revenues come from India-UK student placement, aggregating applications for 10,362 agents.   

• U.S. Bancorp reported first-quarter 2025 earnings with earnings per share of $1.03 and a return on tangible common equity of 17.5%.
• The company demonstrated progress on its strategic priorities, achieving a year-over-year positive operating leverage of 270 basis points on an adjusted basis.
• This improvement was driven by disciplined expense management, momentum across fee businesses, and modest margin expansion.

• Q3 revenue/OP miss vs. our est. on weaker-than-expected Uniqlo International – FX and China weakness key drivers.
• Japan and Western markets continue to outperform; U.S. and Europe now rival China in size.
• FY company guidance unchanged but rising risks to next FY from tariffs and persistent China underperformance.

• We are gradually building a high-conviction coverage of ideas for mid and small-cap companies in the Philippines.
• We established metrics focusing on high ROCE, sustainable growth of 10-15% YoY, robust balance sheets, and prudent capital allocation, essential elements for identifying potential multi-bagger opportunities.
• Read our initiation on Asian Terminals Inc (ATI PM): Steady and Cheap Container Port Terminal Operator, and our recent update on DigiPlus Interactive (PLUS PM).

• 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.

• Insider buying spanned across 40+ stocks in June 2025, highlighting continued conviction among promoters, directors, and trusts.
• While, there were fewer companies with market cap above USD 1 bn which saw insider buying, this number was significantly higher (35 count) in smaller names.
• Companies which have zoomed after the insider purchases include – LT Foods Ltd (LTFO IN) (+10%), Valor Estate (+11%). In smaller names – Man Industries (India) (MAN IN) (+88%)

• American International Group (AIG) presented its first quarter of 2025 results, showcasing a mix of achievements and challenges that yield insights for potential investors.
• The company’s performance was framed by significant strategic moves, including the deconsolidation of Corebridge Financial in mid-2024, which has reorganized its financial statements to treat Corebridge’s historical results as discontinued operations.
• AIG reported an adjusted after-tax income of $702 million or $1.17 per diluted share for the period.

• On July 9, 2025, KKR announced it would reduce its stake in Kokusai Electric from ~23.5% to ~10.6% through a ¥90 billion overnight secondary offering.
• KKR’s move reflects a classic private equity monetization strategy following operational improvements and a successful IPO.
• While the sale caused a modest short-term share reaction (~2% dip), such liquidity events rarely impact long-term value—fundamentals remain the key driver for patient investors.

• Travel Food Services leads India’s airport QSR sector with a 24% market share and expands internationally through strategic partnerships, capitalizing on the growing global travel F&B market. 
• With a debt-free balance sheet and robust margins, TFS ensures scalable growth through strategic joint ventures and partnerships, minimizing capital expenditure while expanding operations. 
• With its diverse brand portfolio and a presence in high-traffic airports across India and abroad. The company’s expansion into new airports ensures sustained growth in the travel food services sector.

• In this insight, we discuss a pair trade between SM Entertainment Co (041510 KS) (long) vs HYBE (352820 KS) (short).
• There is an increasing probability that HYBE’s founder Bang Si-hyuk could face some jail time in which case there could be some vacuum of management leadership at HYBE.
• Despite its recent outperformance, SM Entertainment’s valuation is much more attractive than HYBE (SM is trading at 9.6x EV/EBITDA vs 18.5x for HYBE in 2026).

• 1st July the Korean media was “pre-announcing” 2Q25 operating profit to be “weaker than expected”, declining “by more than 15% from the first quarter” to KRW mid-5 trillion range. 
• Samsung official announcement is worse: operating profit KRW 4.6tn, down -56% YoY and -31% QoQ. This suggests a lower margins mix (less HBM, higher Foundry losses) and more Opex. 
• Last week, Consensus was expecting 2Q OP KRW 6.7tn, now down to 6.1tn. The reported 4.6tn is a nasty miss that implies that Consensus is way too high for 2H25. 

• We won’t be generation heads-down forever. Handsets are impractical as our primary device to interact with information technology.

• When we use them, we lose touch to the real world. Headsets are the obvious next step to allow for a more integrated experience.

• Meta has been betting on the handset-to-headset transition for more than a decade. And they have been doing so with courage and determination.

• The Arena REIT (ARF AU) vs. National Storage REIT (NSR AU) Price-Ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• This relative value opportunity can be implemented as a long-short pair trade or as relative over-/underweights in a long only 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.

• Zhou Liu Fu Jewellery (6168 HK) has an impressive debut, but it is currently expensive, at 4.33x PEG with just a 3-year EPS CAGR of 4.7%.
• It is overpriced by ROE vs. P/B, given it stands higher than the best-fit line. Its inferior market position in the industry makes it deserve to trade below.
• At 20% discount to Chow Tai Fook Jewellery (1929 HK), it should value at HK$27.80. Even at par, it still implies an 8.5% downside. 

• A global perspective on what happened overnight

• Zhen Ding Technology Holding (4958 TT) is leveraging its full-stack PCB and IC substrate portfolio to position itself as a critical enabler of AI hardware across cloud, channel, and edge applications. 
• AI-Linked hardware is expected to account for over 70% of Zhen Ding’s revenue in 2025, up sharply from 45% in 2024 and just 8% in 2023.
• Zhen Ding shares remain substantially below their 52-week highs; we see the company well-placed in terms of long-term drivers. Well placed for an upcoming AI robotics boom.

• Nameson Holdings (1982 HK) reported FY25 revenue/net profit declines of 0.6%/5.3% YoY, respectively, primarily driven by a margin contraction of approximately 40 basis points.
• The company declared a 1.5-cent final dividend (total dividend 11.3 cents/share), maintaining a 75% payout ratio, resulting in a 14% yield on the current share price. 
• The stock trades at a 5.5x FY26e PE with a 3x EV-EBITDA and a 14% dividend yield, assuming the company can maintain flat earnings for FY26.

• Samsung Electronics announced today that it plans to conduct a large scale buyback worth 3.9 trillion won, of which 2.8 trillion won will be cancelled. 
• Samsung Electronics reported  consolidated sales of 74 trillion won and operating profit of 4.6 trillion won in 2Q 2025, down 0.1% and 55.9% YoY, respectively. 
• The average daily trading volume (ADTV) of Samsung Electronics (005930 KS) (common shares) is 15.43 million. Therefore, the share buyback of 56.89 million (common shares) represents 3.7x of ADTV. 

• Looking ahead to the third quarter, we estimate that TSMC’s revenue in U.S. dollars could grow by approximately 5–10% quarter-over-quarter.
• Buoyed by the AI boom and the recent increase in U.S. semiconductor investment tax credits to 35%, TSMC will achieve its full-year target of 25% growth in U.S. dollar revenue.
• In the second half of the year, as multiple brands launch flagship smartphone chips, TSMC’s N3P process is fully prepared for volume production.

• India’s PVC market faces high import dependency, reaching 63% in FY25, due to stagnant domestic capacity and a widening 3 MMT demand-supply gap. 
• Adani and Reliance plan 2.5 MTPA domestic capacity expansion, bolstering production to reduce import reliance. 
• This aims to cut import dependency from 63% to under 30% by FY27, narrowing the gap to 1.4 MMT, enhancing domestic profitability.

• Power GaN coming oversupply, an illustration. The fear is a repeat of the SiC situation (large capacity built in China, Wolfspeed filling for bankruptcy protection) 
• Samsung delays A14 to focus on 3-2nm. Samsung and Intel have the same problem: yields are too low to attract customers.  
• Chinese GPU are coming – or IPO are coming? Moore Threads and MetaX approved to list in Shanghai. Tiny revenues, lots of R&D. Biren Technology expected to file in HK.

• Kokusai has delivered steady growth, with revenue rising from ¥181.8B in FY2021 to ¥238.9B in FY2025 and a strong rebound in profitability.
• It plans to expand capacity, grow service revenue beyond 35%, and launch next-gen tools for GAA logic and 3D memory.
• At ~22x P/E and 12.5x EV/EBITDA, valuations appear fair given its scale, but upside exists if GAA traction and service leverage play out.

• CSC saw peak profitability in 2021, but margins and earnings have since contracted sharply, with EBITDA/ton down to just US$15 in Q1 2025.
• It now targets US$3.1–4.7B capex over 5 years toward green steel, premium products, and ASEAN expansion, though execution risks remain high.
• Despite modest growth and high leverage, CSC trades at 15x EV/EBITDA and over US$1,500 EV/ton—well above regional peers.

• Sales of ikeGPS Group’s suite of products are benefitting from structural trends.
• New research explains these tools remain critical for a range of large customers, with the current focus on North America

bp is pivoting back towards its traditional upstream oil and gas business, with a renewed focus on shareholder returns. It will remain an integrated energy play with strong differentiating factors (trading, high-quality assets) but with a less aggressive tilt towards renewables, a strategic review of lubricants (Castrol) and a primary focus on maximising shareholder returns. In our view, this pivot could reduce its discount to peers. We believe oil and gas exposure is important in the construction of investors’ portfolios as it offsets the negative impact of energy price spikes.

• Revenue increased by 14.6% YoY to JPY66.1bn, with operating profit rising 18.1% YoY to JPY17.6bn.
• The company revised its full-year forecast, lowering revenue by 3.9% but raising operating profit by 4.7%.
• Assets under management reached JPY2.67tn, exceeding fiscal year-end targets, driven by new asset management contracts.

• 2Q25 production was 21.4 mbbl/d, which is very close to our forecast (~22 mbbl/d).
• The company reported a net cash position of US$241.9 mm at end-June, significantly above our expected US$210 mm.
• This reflects both the timing of capital expenditures across 2025 and continued strong operating performance.

• The US$10.23bn net inflow through the Southbound Stock Connect in June marked a near-doubling from the May slump (US$5.85 bn), though it’s still lower than the 15-month average (US$12.1 bn).
• Investors bought high dividend yield SOEs heavily (e.g. China Construction Bank), and sold Tencent, Xiaomi, Alibaba. Healthcare companies – Innovent Biologics and CSPC Pharma were bought, underscoring investors’ defensive stance.
• Investors’ dividend yield fascination seems unabated.  Some technology stocks (Tencent) do not seem overbought. Despite large buying, EV and ecommerce heavyweights (Meituan) are declining. Investors’ appetite in them could slump.

• The DigiPlus Interactive (PLUS PM) share price has slipped from a peak of 65 Pesos on June 17th to under 30 Pesos/share as gaming restriction proposals dampen sentiment.  
• The bill proposed by Senator Gatchalian prohibits e-wallets, imposes high minimum cash-ins, and stricter advertising regulations. In addition, the Finance department is proposing a tax on online gaming. 
• The stock now trades at 8.3x PE FY25e. The company has announced a buyback of 6 billion pesos (5% of outstanding shares on current market capitalization). 

• TSMC: +26.3% Premium; Near Record High After U.S. 4th of July Holiday
• UMC: +4.7% Premium; One of the Highest Levels in History — Short
• ASE: +4.6% Premium; Wait for More Extreme Level Before Going Long or Short

• Royal Gold Inc (RGLD US) launched a cash takeover bid of 2 CAD/share (85% premium) on Horizon Copper.
• Recall, Horizon Copper (HCU CN) has a 25% controlling stake in Entree Resources (ETG CN). 
• Rio Tinto PLC (RIO LN)is too bureaucratic to counterbid as the CEO transition paralyses the organization.

• ASML has been underperforming for 18 months. Recent downgrades are a delayed recognition of reality. ASML’s management goals for 2030 (10% revenue growth Cagr) are ok (plausible) 
• But growth is slowing fast in 2H25-1H26. Growth should re-accelerate in 2H26 as the impact of China and  Mature node lower spending, multiple delays (Intel, Samsung) is fading away. 
• The stock is getting cheaper, but lacks catalysts for another 2-3 quarters. Trading at 25x forward PEx, that’s reasonable given the firm’s intrinsic qualities.

• Protean’s exclusion from the PAN 2.0 project raises concerns about potential long-term revenue loss, especially as tax services contribute significantly to its current business.
• Protean’s strategic diversification into pension services, digital identity solutions, and international markets positions it well for long-term growth, reducing reliance on tax services.
• With INR800 crore in cash reserves and zero debt, Protean is financially resilient, allowing it to invest in new growth areas, making it attractive for long-term investors despite short-term volatility.

• Extra Edition of the Broker Call Report

• Shanghai Conant Optical (2276 HK) to utilize proceeds from its January placement for the research, development, design and manufacturing of lenses and vision solutions for smart glasses and XR headsets.
• The company will construct an automated RX resin lens production line with a focus on high-end customized lenses, at a cost of $4M, to be funded by internal accruals.
• The company declared that based on the preliminary assessments, it expects its 1H25 net profit to increase by 30% mainly due to strong volume growth and higher ASP.

• US Eyes New AI Chip Restrictions on Malaysia and Thailand
• Chip and AI Boom Driving Taiwan’s Offshore Wind Expansion — Local Stocks to Watch
• China Set to Become World’s Largest Semiconductor Foundry Hub by 2030 — But One Needs to Consider Leading Edge Capacity vs. Mature Capacity

• Q3 earnings risk skewed to upside: we forecast sales/OP of ¥857b/¥171b vs. Street’s ¥826b/¥152b.
• Domestic Uniqlo trends strong; international segment likely resilient despite Inditex’s headline miss.
• Tariff impact likely reiterated but remains a FY26 issue, not a near-term earnings swing factor.

• In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks (4 to 18 July 2025).
• Korea Electric Power (KEPCO) (015760 KS) was the best performing stock among the top 100 stocks in KOSPI in the past two weeks. 
• The top 10 picks in this bi-weekly include LG Uplus, KCC, SK Hynix, Naver, Korea Kolmar, Korea Investment Holdings, Misto Holdings, Lotte Tour Development, LG Chem, and SK Inc.

• After peaking in 2021, POSCO’s performance has steadily weakened, with revenue and margins declining due to softer steel prices and macro headwinds.
• The group is gradually pivoting toward battery materials and EV supply chains via POSCO Future M, backed by large investments in lithium, cathodes, and green hydrogen.
• Despite near-term profitability pressure, the stock trades at just 0.5× book and ~4.7× EV/EBITDA, offering compelling value if its transition strategy plays out.

• Hansoh Pharmaceutical Group (3692 HK) granted an exclusive worldwide license to develop, manufacture, and commercialize HS-20094, an investigational dual GLP-1/GIP receptor agonist.
• Globally, the only approved dual GLP-1/GIP receptor agonist is Eli Lilly’s Zepbound, which garnered revenue of $4.9B in 2024, with a potential of peak global sales of $27.2B by 2030.
• Hansoh’s mainstay drug Ameile was approved for an additional indication of treatment of adult patients with stage II to IIIB NSCLC whose tumors have EGFR mutations.

• Asian Terminals (ATI PM) is a steady container port terminal operator, trading at 8.4x PE for FY25e, based on our numbers, and net cash (~10% of the market cap). 
• With the recent approval of a two-phase 16% tariff hike at the Batangas Container Terminal, we see scope for the company to increase its earnings in FY25 and FY26.  
• We also anticipate multiple years of growth (~20% ROCE) as the company embarks on a 4.2 billion peso expansion, and growth from the South Harbor/Manila is expected to be consistent.

• Wrap of events affecting the market on Friday night and the weekend and a preview of the week ahead

• Riverstone’s (RSTON SP — US$779 million) CEO recently bought 1 million shares on the open market.

• That caught my attention. Insider buying after a decline in the share price is usually a positive sign.

• I also knew that Riverstone had been one of the best-performing stocks on the Singapore Stock Exchange, compounding earnings per share at a +15% annual rate since its IPO in 2006.

• KHI has retreated 12% from its June 30 high, but is still 69% above its April low, despite guiding for a decline in orders and weak profits in FY Mar-26.
• Orders from Japan’s Ministry of Defense are forecast to drop from ¥772.3 billion to ¥400 billion this fiscal year, while the overall profit of the Aerospace division drops 14%.
• The potential impact of U.S. tariffs on Power Sports & Engines is not factored into guidance, offsetting  what otherwise seem to be conservative assumptions.

• GitLab recently reported its financial results for the first quarter of fiscal year 2026, demonstrating a robust revenue increase of 27%, amounting to $214.5 million.
• The company’s non-GAAP operating margin reached a commendable 12.2%, a significant improvement from the previous year’s negative margin.
• GitLab’s CEO, Bill Staples, emphasized the strategic positioning of its AI-native, cloud-agnostic DevSecOps platform, which caters to the entire software development lifecycle and supports a unified data store for contextual AI.

• In 1H FY11/25, revenue was JPY18.7bn (+13.2% YoY), with operating profit of JPY321mn and net income of JPY186mn.
• Wholesale unit sales increased, retail unit sales declined, but higher average unit prices boosted revenue and gross profit.
• SG&A expenses decreased by 3.3% YoY, contributing to improved profitability, with a workforce of 1,037 employees.

• For the upcoming 11th national VBP, we think some core and big varieties could be included, involving companies such as Sunshine Lake Pharma, Huadong Medicine, Hansoh Pharmaceutical (3692 HK), etc.
• Anjoy’s IPO is fairly priced. Reasonable valuation range is 10-15x P/E.However, unfavorable factors have led us to take a conservative attitude towards the upside potential of stock price after IPO.
• For Sunshine Lake Pharma’s privatization of HEC Pharma, Composite Document was despatched. However, if investors truly understand “the essence” of HEC Pharma, they will be calm/rational about this absorption merger.

• Tan’s continuation of IDM 2.0 marks a pragmatic recalibration. By focusing on margin recapture and tailored customer models, Intel’s ambitions are not just about competing with TSMC at scale.
• Intel’s 18A node was never intended as a mass-market foundry product; it was a strategic, internal milestone to reestablish process credibility, with commercial foundry ambitions anchored in 18A-P and 14A.
• Intel’s future hinges less on market share and more on executing a credible, margin-accretive foundry model.  It could well emerge as a second-source alternative in a geopolitically fragmented supply chain.

• Chewy Inc., a prominent player in the pet e-commerce space, presented an overall positive first-quarter performance for fiscal year 2025, emphasizing growth initiatives and financial health.
• Chewy reported an 8.3% year-over-year increase in net sales, reaching $3.12 billion, surpassing their guidance estimates.
• This growth was largely driven by robust demand across consumables and health and wellness product categories, with a notable year-over-year hardgoods sales increase of 12.3%.

• Jabil Inc. presented a strong performance in its third quarter of fiscal year 2025, surpassing expectations in multiple financial metrics.
• The company reported net revenue of $7.8 billion, marking a 16% increase year-over-year and exceeding earlier guidance by $800 million.
• This boost was primarily attributed to the Intelligent Infrastructure sector, particularly in AI-related revenue, supporting robust demand in cloud and data center infrastructure markets.

• Infinitt Healthcare is a leading Korean healthcare IT solutions specializing in medical imaging and enterprise imaging platforms. It is the number one provider of PACS system in Korea. 
• Five major investment highlights include strong export growth, solid growth in sales and operating profits, number one player in PACS system in Korea, strong balance sheet, and attractive valuations. 
• The company has a strong balance sheet. Net cash was 150 billion won at the end of 1Q 2025, representing 95% of its market cap.

• Aurubis AG, a key player in the multimetal production sector, has reported robust performance for the first half of its fiscal year 2024-25, amidst a challenging global market environment.
• The company posted an operating EBT of EUR 229 million, nearly matching the previous year’s figures, and an EBITDA of EUR 341 million.
• A slight increase in return on capital employed to 10.2% was observed, despite an increase in capital employed due to their growth projects.

• Alphabet is making headlines once again—this time for a groundbreaking deal that could reshape the future of clean energy.
• In one of the largest commercial commitments yet to nuclear fusion, Google has signed an agreement with Commonwealth Fusion Systems (CFS) to purchase 200 megawatts of electricity from the company’s first commercial fusion power plant, ARC, currently under development in Chesterfield County, Virginia.
• This deal marks a major endorsement of fusion power as a viable long-term solution to the surging energy needs of hyperscale technology companies.

• Vodafone Idea (IDEA IN) faces severe financial distress due to INR 83,400 crore in mounting Adjusted Gross Revenue (AGR) dues and substantial deferred payment obligations. 
• Management warns Vi cannot operate beyond Financial Year 2026 without timely government support for AGR dues, halting crucial bank funding.  market.
• Vi proposes payment plans and seeks substantial funding, while ARPU is growing, and the government supports a three-player

• Nuvama Wealth Management (NUVAMA IN)‘s stock fell sharply due to SEBI barring Jane Street, its domestic trading partner, over alleged market manipulation, despite no direct accusations against Nuvama.
• This dip is an overreaction; Nuvama’s strong wealth/asset management (74% revenue) and robust FY26 growth guidance insulate it from Capital Markets segment impact (26%). PAG’s ongoing exit also signals value.
• The market correction presents a “blessing in disguise,” opportunity  into a fundamentally strong, diversified Indian financial services firm.

• SHI has signed an MoU with PetroVietnam Shipyard to build two Suezmax and two LR2 tankers, marking its first move into Vietnam.
• With Geoje running at 117% utilization, SHI has outsourced over 12 Suezmax tankers to PaxOcean Zhoushan and holds ~$3–3.5 billion in tanker backlog.
• While modest in scale, the Vietnam deal could reshape SHI’s outsourcing model—diversifying away from China and laying the groundwork for a longer-term shift in global production strategy.

• Capri Global’s foray into merchant banking, investment banking, and wealth management signals a major shift towards becoming a full-spectrum financial services provider, broadening its business model.
• With a target of reaching INR 50,000 crore AUM in the next three years, CGCL is positioning itself for significant expansion in India’s underserved financial segments, highlighting strong growth potential.
• By integrating AI, data science, and machine learning into its operations, Capri Global is enhancing underwriting, improving customer acquisition, and streamlining business processes, positioning itself for sustained competitive advantage.

• Verint Systems Inc. presented its Q1 2026 earnings results, showcasing a strong beginning to the fiscal year.
• The company reported accelerated annual recurring revenue (ARR) growth of 6%, with total revenue of $208 million and non-GAAP diluted earnings per share (EPS) of $0.29, both surpassing guidance expectations.
• This positive performance was primarily attributed to the company’s expanding AI momentum, led by its AI-powered bots and CX automation platform.

• Netflix, once the poster child for prestige TV and high-budget scripted series, is now rewriting its own playbook.
• In a strategic pivot to broaden its appeal, the streaming giant is aggressively moving into unscripted entertainment, including music competitions, celebrity interviews, global live events, and talent shows.
• Among the most notable developments, Netflix is set to debut Building the Band, a reality competition blending the secrecy of Love Is Blind with the structure of The Voice, hosted by Backstreet Boys’ AJ McLean.

• Patanjali Ayurved (holding company of Patanjali Foods (PATANJAL IN)) acquired a 73.555% majority stake in Magma General Insurance for approximately INR 4,500 crore.
• Patanjali seeks to diversify, leveraging its brand and distribution network to tap India’s underpenetrated insurance market, aligning with IRDAI’s “Insurance for All by 2047” vision.
• Magma General brings established operations, a 26% GWP CAGR, and a network of 18,000 agents, providing an immediate platform for market expansion and growth.

• Top Glove Corp (TOPG MK) revenue grew 30% YoY to RM 830M in 3QFY25. Revenue dropped 6% QoQ despite sales volume increasing 4%, due to lower ASP and weaker USD.
• The revenue in Europe (contributes 37% of total revenue) softened further in 3QFY25 due to heightened competition. North America region (26% of revenue) witnessed 24% QoQ sales growth in 3QFY25.
• Decline in raw material prices in 3QFY25 coupled with competitive pressure led to the ASPs being adjusted downwards.

• Context: The REA Group Ltd (REA AU) vs. News Corp (NWS AU) Price-Ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity. 
• Highlights: Statistical mean reversion suggests going long REA Group Ltd (REA AU) and short News (NWS AU). A target return is provided. News Corp is the majority owner of REA.
• 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.

• Context: This article provides an update on a previously identified pair trading opportunity between Perseus Mining (PRU AU) and Capricorn Metals (CMM AU), based on statistical mean reversion analysis.
• Key Insights: The trade has now reached its exit signal as the price ratio reverted to its one-standard deviation band, yielding a positive return.
• Why Read: For investors interested in quantitative trading strategies, this article demonstrates how statistical arbitrage can generate short-term alpha and highlights actionable similar opportunities in the current market.