Equity Bottom-Up Archives | Page 3 of 222 | Smartkarma

• Nvidia’s warranty liabilities have ballooned from $1.29B in Q4 FY25 to $2.7B in Q3 FY26, with actual warranty spending surging 14× YoY.
• The jump comes as Blackwell-generation racks grow hotter, denser and more complex (up to 2 million individual parts), driving higher expected incident rates.
• Rising warranty reserves paired with rising finished-goods inventory suggest the same underlying tension that systems are getting harder to operate and harder to absorb downstream.

• Mphasis Ltd (MPHL IN) is a global information technology (IT) services and consulting company that specializes in providing cloud and cognitive services to help enterprises undergo digital transformation. 
• It is majority-owned by the Blackstone Group, one of the world’s largest private equity firms.
• Key forensic takeaways include hints of aggressive revenue booking via unbilled receivables, risk of goodwill impairment, etc.

• In this insight, we discuss about various aspects of Chow Tai Fook Jewellery (1929 HK) ‘s H1 FY2026 financial performance. It discusses about divergent performance by region and product.
• Details in this note include why dark clouds are looming over the stock price of this counter and why the valuation multiple could decline.
• Finally, we conclude discuss on valuation and how this will impact the stock price.

• Allfunds Group is a leading B2B WealthTech platform with a resilient business model, characterized by high recurring revenues and a strong network effect. Its extensive network of fund houses and distributors creates a significant competitive advantage.
• The company is well-positioned to capitalize on secular growth trends in the wealth management industry, including the increasing demand for open architecture solutions and the ongoing digitalization of wealth management services.
• Despite a challenging macroeconomic environment, Allfunds has demonstrated robust financial performance with consistent revenue growth and strong profitability. However, potential risks include margin pressure from competition and sensitivity to market fluctuations impacting assets under administration.

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• India’s Nifty50 index reached an all-time high yesterday. However, many Indian stocks are near their 52-week lows. Many among them have strong forecast earnings growth, good balance sheets, attractive valuations.
• We screen 17 stocks with double digit forecast EPS growth, PEG < 1.4x, net debt to equity less than 50%. They are spread across construction, chemicals, healthcare, industrials and technology.
• The largest five are Deepak Nitrite (DN IN), Cohance Lifesciences, BASF India Ltd (BASF IN), Crompton Greaves Consumer Electricals (CROMPTON IN), Clean Science and Technology (CLEAN IN).

• The Bank has reached its three-year target one year ahead of schedule
• Focus has now turned to growth and new opportunities as unleashed from full  government supervision
• Valuations do not yet discount an improvement in returns from here

• Context: The Toyota Motor (7203 JP) vs. Suzuki Motor (7269 JP) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Toyota and short Suzuki 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.

• Cordelia Cruises, India’s only domestic cruise operator, is going public through an IPO of Rs. 7.27 billion. It plans to triple its fleet by 2028, expanding its passenger capacity significantly.
• The Indian cruise market remains under-penetrated with a CAGR forecast of 35-40% from FY2025-2030, creating a prime opportunity for growth, especially for domestic players like Cordelia.
• The IPO is a crucial step for Cordelia to expand its fleet, cater to increasing demand, and capitalize on the underpenetrated Indian cruise market.

• Vobile Group is a global leader in SaaS solutions for digital content asset protection and monetization, poised for growth driven by the proliferation of online video and the increasing need for intellectual property protection.
• The company is strategically focused on leveraging Artificial Intelligence (AI) to enhance its service offerings and is expanding its footprint in the rapidly growing Chinese market, which now accounts for a significant portion of its revenue.
• Recent financial performance indicates strong top-line growth and improving profitability, with a notable surge in net profit and expanding gross margins, though the company currently does not pay a dividend.

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• Daido Steel (5471 JP) produced FY25 (March year-end) 1H OP [IFRS basis] of ¥18,464mil (+1.1% YoY) on sales of ¥284,499mil (+0.4% YoY).
• Both sales and OP surpassed guidance which called for OP of ¥12,500mil (-31.5% YoY) on sales of ¥275,000mil (-3.0% YoY), thanks primarily to stronger than expected demand for ship engine valves in the open die forging business and despite having incurred about ¥2,300mil of costs related to the Superalloy Manufacturing Process Transformation Project, one of the firm’s ongoing strategic investments in the current MTP.
• The Mid-Term Plan [MTP], which ends in FY26, was revised down to reflect (1) a larger than expected decline in steel product sales volumes, (2) sluggish auto production and weaker than expected industrial machinery-related orders and (3) increasing lack of clarity in the business environment.

• Until the latest accounting scandal, Nidec was just another stupidly over-valued company that chased too many rainbows and missed too many targets.
• Now, finally, it has fallen to interesting valuations and there is a real incentive to fix the things that need fixing. 
• Nidec is a governance nightmare with poor oversight, a history of bad strategic decisions, and shoddy execution. If these are fixed, though, the upside is enormous.

• Q2 results confirmed a clear earnings inflection, driven by strong enterprise SSD demand, improving ASPs, and recovering smartphone NAND volumes.
• Q3 guidance signals record revenue and further margin expansion supported by tight NAND supply and AI-linked storage demand.
• Despite near-term pressure from Bain’s selldown, long-term fundamentals remain intact; valuation discounts justify a ¥12,500 target and accumulate-on-weakness stance.

• Solid Q3 and 9M FY25 Financial Delivery: Despite challenging market conditions in China, Haier Smart Home (6690 HK) delivered solid third-quarter results reinforcing company’s strategic positioning and operational execution.
• Operational Efficiency and Mix Upgrade: The company continued to benefit from digitalised manufacturing, supply-chain optimisation, and higher contribution from high-end segments, supporting EBITDA and net profit resilience despite macro softness
• Strategic Focus Driving Sustainable Growth:Emphasis on Smart Home ecosystem expansion, global penetration, and disciplined capital allocation reinforce its competitive positioning and sets the foundation for sustained earnings momentum into FY26.

• Amazon.com reported robust financial results for the third quarter of 2025, highlighting both progress and challenges across its business segments.
• Total revenue reached $180.2 billion, marking a year-over-year increase of 12% when adjusting for foreign exchange impacts.
• Operating income was reported at $17.4 billion, however, this was impacted by two significant expenses: a $2.5 billion FTC settlement and $1.8 billion in estimated severance costs.

• BHP has abandoned a last minute bid for Anglo American, which will likely see the latter’s planned merger with Teck with proceed 
• We consider other potential targets for BHP, all copper, concluding that most seem unlikely for now, especially with the company stating a focus on organic growth
• BHP faces the risks of a decline in iron ore (consensus) and copper (non-consensus) prices in our view, while it trades at premium to the sector and above our DCF 

• Biogen Inc. has made headlines with its latest strategic maneuver: a $50 million research partnership with Dayra Therapeutics, a biotech innovator specializing in macrocyclic peptides.
• This move signals Biogen’s intensified push into the immunology space, a significant pivot from its traditional focus on neuroscience.
• The deal gives Biogen early access to a platform designed to develop oral treatments for autoimmune and inflammatory conditions—categories currently dominated by injectable therapies.

• Factory visit to GUS Technology reveals Taiwan’s strategic position as a non-China battery supplier for defense and critical infrastructure applications.
• Proprietary pouch cell technology with patents in Taiwan and Japan addresses weight-sensitive applications including drones, underwater vehicles, and data center UPS systems.
• Dual product strategy (safety-focused Mettle Series and energy-dense Hyper Series) targets both commercial reliability and mission-critical performance markets.

• AI PCs turning the PC refresh into a gradual, extended up-cycle
• Memory inflation is one of the major margin risks for PC makers in 2026
• Dell’s server business indicates AI factory build-outs becoming a multi-year investment cycle. Remain long Dell, Asustek, Acer.

• Dynatrace recently reported its fiscal second quarter of 2026 results, showcasing a robust performance that exceeded its guidance across various metrics.
• The company reported a 16% growth in Annual Recurring Revenue (ARR), a 17% growth in subscription revenue, and a pretax free cash flow representing 32% of revenue on a trailing 12-month basis.
• Such strong results underline the company’s successful strategy execution, driven by growing demand in end-to-end observability and multi-cloud tool consolidation.

• OHBA (hereafter, the Company) is a general construction consulting firm boasting a leading market share in the field of urban planning.
• In the construction consulting industry, there were 56 companies with annual sales of JPY 5 bn or more and 106 companies with JPY 2 bn or more in the 12 months from January to December 2024.
• The Company ranks 24th, positioning it as a mid-tier player. Over its century-long history, however, the Company has specialized in urban development fields such as city planning, and in this domain, it holds the top domestic market share, ahead of the runner-up, Nippon Koei Urban Space, by just under JPY 1 bn in annual sales.

• In F2Q26, pro forma revenue increased by 18% YoY excluding two disposals.
• It was successful that the company rebranded its food delivery business.
• However, the rebranding brought significant sales and marketing expenses in F2Q26.

• Nvidia’s multi-year cloud service commitments jumped from $12.6B to $26B in one quarter, but only $1B is due in cash before late FY26, raising questions about the immediacy of demand.
• Nvidia is backstopping customer infrastructure via an $860M facility lease guarantee, with only $470M escrowed; effectively transferring counterparty credit risk onto Nvidia’s balance sheet.
• Structurally, this resembles circular financing, where customers take on debt (facilitated by Nvidia) to secure future compute capacity, enabling Nvidia to book future revenue while cash conversion lags.

• CICC (3908 HK)‘s announced merger with Dongxing Securities (601198 CH) and Cinda Securities (601059 CH) will elevate it to the 3rd largest HK-listed Chinese securities company.
• Based on our assumptions, its EPS will be diluted by 7.1%, BPS enhanced by 12.2%, and ROE lowered by 1pp for FY26, before accounting for synergy.
• Its presence in Fujian (+616.7%), Liaoning (+500%), and Beijing (+100%) will be significantly enlarged. Additionally, it will open up potential benefits from optimisation.

• Nvidia is transitioning from a GPU vendor to a full-stack systems supplier for AI infrastructure, with the Data Centre segment driven more by integrated rack-scale deployments than standalone accelerators.
• Management positions Nvidia as the reference architecture for a “$3–4 trillion annual AI infrastructure build”, but finished goods inventories are up 90%+ amid “sold-out cloud capacity.”
• The rapid shift toward rack-scale systems introduces new ecosystem tensions, as Nvidia’s move into full system design increasingly overlaps with the domain of OEM partners.

• Kioxia is a leading global supplier of NAND flash memory, experiencing a strong financial recovery driven by surging demand from AI, data centers, and smart devices.
• The company’s strategic focus is on technological leadership in 3D NAND and advanced SSDs, supported by a significant joint venture with Western Digital that enhances R&D and production scale.
• While the outlook is positive, key risks include the inherent cyclicality of the memory industry, intense competition from established players, and execution risks associated with ambitious margin and technology targets.

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• Dominion Energy is accelerating into one of the most consequential growth phases in its history, with data centerdriven load growth, multibillion dollar transmission expansions, and the 2.6 gigawatt Coastal Virginia Offshore Wind (CVOW) project advancing toward first power in early 2026.
• Now, reports indicate that Dominion is exploring a potential acquisition of Northern Virginia Electric Cooperative (NOVEC), a move that would deepen its footprint in the world’s busiest data center corridor—Loudoun County’s “Data Center Alley.” The timing is notable: Dominion disclosed that contracted and in process data center demand has surged to roughly 47 gigawatts, up 17% since year end 2024, while the company simultaneously works through major regulatory, financing, and construction milestones across its portfolio.
• Dominion and NOVEC already share deeply interconnected transmission infrastructure, and NOVEC’s customer mix—where data centers account for roughly two thirds of electricity sales—aligns with Dominion’s strategy to serve rapidly rising AI related load.

• Vertically integrated Inner Mongolia smelter with second-quartile cost positioning, expanding renewables and alumina self-sufficiency, and entering overseas low-carbon production via its Saudi project.
• FY24 margins inflected sharply; mid-cycle valuation implies material upside with strong sensitivity to aluminium pricing and structural demand drivers including AI datacentres, EVs, and grid expansion.
• Base-Case Target Price HK$18.6 (24% upside); bull-case HK$22.1; bear-case HK$16.9, supported by integrated operations and medium-term EBITDA expansion potential.

• United Arrows is beginning to flex its market power by launching more new brands rather than just iterations of its eponymous name
• A key focus is a move to exploit the massive demand for Korean brands in Japan with Korean licenses for Nice Weather and Osoi.
• More licenses are expected in the near future as the select shop retailer looks to take more share of the premium market.

• Bajaj Housing Finance (BHF IN) is a priced to perfection narrative.
• The current valuation (37.3x P/E, 4.2x P/B) prices the stock for absolute perfection in an environment that is distinctly imperfect and rapidly deteriorating.
• A critical red flag highlighted in the Q2 transcript is the elevated annualized attrition rate.

• Mars Group Holdings exhibits a compelling value and dividend profile, underpinned by a robust history of financial growth and a strong net cash position, making it attractive for income-oriented investors.
• The company’s primary exposure to the Japanese pachinko industry presents a significant headwind, as the market is in a long-term structural decline due to demographic shifts, regulatory pressures, and competition from other entertainment forms.
• A recent downturn in quarterly performance (FY1Q26) following years of strong growth introduces uncertainty, making near-term earnings and regulatory developments critical catalysts to monitor.

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• While focus on dividend yield is common, we think secular growth in DPS over a long period of time is a stronger marker of robust earnings trajectory and shareholder friendliness. 
• Among stocks in Asian EM and DM, we screen 50 that raised their DPS every year over the past decade – a commendable performance given earnings dislocations during this period.
• Stocks from Japan (24), HK (10), onshore China (6), India (6), Singapore (2) and Taiwan (2) make up our list. 10 are large and liquid with strong forecast EPS growth.

• GlobalData is a data analytics and consulting company with a strong, subscription-based recurring revenue model, which accounts for approximately 75-80% of its total revenue.
• The company has demonstrated a solid long-term growth track record through both organic development and strategic acquisitions, though recent performance shows signs of slowing revenue growth and margin pressure.
• Positioned in the growing business intelligence and analytics market, the company’s ‘One Platform’ model offers a scalable and integrated solution, but it faces significant competition from larger, established players.

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• In this insight, we discuss a pair trade involving a basket of Korean consumer stocks (long) and  a basket of Japanese consumer stocks (short) over the next 3-6 months.
• The 10 Korean names (long basket) include Samyang Food, APR, Amorepacific Corp, Korean Air, CJ Corp, Classys, Nongshim, Shinsegae, Hotel Shilla, and Lotte Tour Development. 
• The 10 Japanese names (short basket) include Fast Retailing, Oriental Land, Kao Corp, Seibu Holdings, ANA Holdings, Shiseido, J.Front Retailing, Kose Corp, Pola Orbis Holdings, and Kyoritsu Maintenance. 

• TSMC: +25.8% Premium; Rebounded to High End of Range, Good Level to Open a Short of the ADR Spread
• UMC: -2.2% Discount; Good Level to Open a Short of the ADR Spread
• ASE: +3.2% Premium; Wait for More Extreme Level Before Going Long or Short

• Institutions were net sellers of Singapore stocks from Nov 14 to Nov 20, with a net outflow of S$131 million.
• United Overseas Bank led share buybacks, acquiring 997,700 shares at an average price of S$34.01, totaling S$58.2 million.
• Wing Tai Holdings’ Cheng Wai Keung increased his interest to 62.24%, while Banyan Tree Holdings’ Goodview Properties raised its stake to 6.06%.

• Global Payments Inc. delivered a strong performance in the third quarter of 2025, showcasing robust operational results and strategic initiatives that position the company for future growth.
• The company reported 6% constant currency adjusted net revenue growth, excluding dispositions, alongside 110 basis points of margin expansion and 11% constant currency adjusted EPS growth compared to the prior year.
• This performance was bolstered by strong execution across various business units, notably Merchant Solutions and Issuer Solutions.

• In Q1 2026, BDX will merge its Biosciences & Diagnostic Solutions segment to Waters (WAT). BDX will receive $4BN in cash and 0.14 WAT shares per BDX share, leaving its shareholders with roughly 39 percent of the combined company.

• The remaining business, referred to as New BD, will be a focused med-tech company with ~$18BN in revenue across Medical Essentials, Connected Care, BioPharma Systems, and Interventional. More than 90 percent of revenue will be recurring, and management expects high single-digit earnings growth.

• New BD’s valuation looks appealing. Based on where BDX and WAT currently trade, New BD implies a P/E of roughly 11x earnings. I believe the business deserves at least a 13x multiple, which would equate to about 12% upside. That said, I’m not ready to buy yet.

• Paymentus is a high-growth, cloud-based bill payment technology provider, capitalizing on the secular shift from paper to electronic transactions. Its strong revenue growth is driven by onboarding new clients and increasing transaction volumes.
• The company’s proprietary Instant Payment Network (IPN) and omni-channel platform create a network effect, enhancing its competitive moat. Strategic partnerships with major financial institutions and technology companies are expanding its market reach.
• While the company exhibits strong top-line momentum and improving profitability, it faces risks from customer concentration, potential margin pressure from large enterprise clients, and intense competition in the fragmented electronic payments market.

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• ADT’s third-quarter 2025 financial performance indicates a steady trajectory with both positive and negative elements impacting its outlook.
• The company’s financial highlights reveal a 4% increase in total revenue to $1.3 billion and a 3% growth in adjusted EBITDA to $676 million.
• Additionally, the adjusted earnings per diluted share rose by 15% year-over-year to $0.23, reflecting robust cash flow generation amounting to $709 million year-to-date.

• Khazanchi Jewellers posts a strong Q2FY26 with 46% revenue growth, 119% PAT surge, and a major 10,000 sq. ft. Chennai flagship store set to launch in Jan 2026.
• High-Margin retail and diamond segments are accelerating, supported by a stable B2B engine with 90% repeat orders, positioning the company for structural margin expansion and stronger long-term earnings visibility.
• Khazanchi enters a high-growth phase, with premiumisation, retail expansion, and strong execution driving sustainable profitability and transforming it from a wholesale-led player into a high-margin retail-focused jewellery brand.

• TSMC (Taiwan Semiconductor Manufacturing) – ADR (TSM US)’s retired Senior Vice President Dr. Wei-Jen Lo has taken a position at Intel.
• Trump has been in power for less than a year, and the U.S.’s measures have fully revealed its purpose of confrontation between China and the United States. 
• TSMC’s Arizona fab profit dropped from NT$4.32 billion in 2Q25 to NT$410 million in 3Q25.

• We think Wharf REIC, which owns luxury malls in Hong Kong, is undergoing a structural de-rating, on the back of macro headwinds, currency impact and company fundamentals
• Southbound consumption into Hong Kong has weakened deeply, catalyzed by a punitive USD-pegged Hong Kong Dollar (HKD) and a collapsing Japanese Yen (JPY)
• In latest interim results, Wharf REIC reported HK$5.1 billion revaluation deficit and a HK$2.4 billion net loss, representing negative rental reversions crystallizing into lower asset values.

• Transition to AI-Driven Subscriptions Fueling Growth: Meitu is successfully transitioning its business model from advertising to a high-margin, AI-driven subscription service for its photo, video, and design products. This strategic shift is the primary driver behind significant revenue and profit growth, with paying subscribers reaching 15.4 million.
• Strategic Divestment from Cryptocurrency: The company has fully divested its cryptocurrency holdings, realizing a substantial net gain of nearly US$80 million. This move de-risks the balance sheet from the volatility of digital assets and allows management to refocus capital and attention on its core AI imaging business.
• Expanding Global Footprint and Enterprise Solutions: Meitu is aggressively expanding its international user base, which now accounts for 35% of total Monthly Active Users (MAUs). Concurrently, it is leveraging its core AI technology to launch productivity-focused tools for e-commerce and advertising, opening new avenues for enterprise revenue.

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• 3SBio Inc (1530 HK) proposed to spin-off and separately list the shares of Mandi, a subsidiary of the company.
• In 2024 and 1H25, Mandi contributed 16% and 17% of total consolidated sales respectively, while its EBITDA contribution was 14.4% (in 2024) and 11.5% (in 1H25).
• As far as 3SBio (ex-Mandi) is concerned, marketing approvals for key pipeline product like SSGJ-608, along with indication expansion, geographical expansion of few drugs will be key in near term.

• Iron ore prices have remained rock-solid at 104 USD/ton, but the fundamentals are on slightly shaky ground as Rio Tinto (RIO US) commenced shipments from its Simandou project. 
• Chinese steel production and apparent demand in October tracked an extremely weak 12%/12.5% YoY, with annualized production rates now 864 million tons, and lending (TSF) was lacklustre at -42% YoY.
• We like Fenix Resources (FEX AU) despite the negative sentiment, due to its production growth profile from 4 million to 10 million tons over the next 3 years. 

• 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 twelve pair trade opportunities across three markets and five 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.

• PDD’s total revenue increased by 9% YoY in 3Q25 higher than 7% YoY in 2Q25.
• In 3Q25, operating cash flows stopped decreasing after a year and grew by 66% YoY.
• We believe PDD’s stock price can be double for the next twelve month according to other e-commerce companies’ EV/EBITDA.

• Despite an overwhelming response and a 26-30% surge in the grey market, at 8.3x FY26 PER,  Chuangxin Industries (2788 HK)‘s IPO price does not generate much excitement for us. 
• Heavy reliance on connected transactions with the controlling shareholder, pressure on margins in the future, and a highly leveraged balance sheet are concerns. 
• We do not think it justifies trading at a premium to peers, hence, limited upside from now. The small free float, however, will increase the share price volatility.

• We compile our selection of small- and mid-cap names with the desired characteristics of high dividend yields, value, and a margin of safety.
• We compile updates on Oriental Watch (398 HK), The Keepers Holdings (KEEPR PM), and Ginebra San Miguel (GSMI PM), and others into the results.
• Our top picks are Asian Terminals (ATI PM), The Keepers Holdings (KEEPR PM), Taste Gourmet (8371 HK), Philippine Stock Exchange (PSE PM), and Ginebra San Miguel (GSMI PM).

• Copper inventory on the COMEX surpassed 400,000 tons on Friday, marking an increase of 330% from the beginning of the year, amidst speculation of a levy of tariffs.
• The Department of Commerce has issued a proclamation imposing a 15% tariff in 2027, with the rate increasing to 30% by 2028, implying a LME-Comex Spread of >3000 USD/ton.
• In addition to the sucking up of copper inventory into the US, we have supply shortages (see: Grasberg To Weigh On Copper Supply In The Medium-Term, March To 12k USD/Ton )

• In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the next two weeks (21 November to 5 December 2025).
• Our top 10 picks in the past two weeks (7 to 21 November) were up on average 1.4% this period, outperforming KOSPI which was down 2.5% in the same period.
• Our top 10 picks in the next two weeks include LG CNS, Hana Financial, Orion Corp, KT&G, Naver, KEPCO E&C, Hanmi Pharm, Amorepacific Corp, LG Chem (Pref), and SK Inc. 

• Our measure of container shipping price momentum remained weak in October
• Poor Q3 results and downbeat Q4/FY guidance from Maersk, Zim; and Suez re-opening?
• Conditions are poor and will likely remain that way for a while; AVOID the sector

• KULR Technology Group is transitioning from a service-oriented business to a product-driven company focused on thermal management and battery safety solutions, with a significant strategic pivot towards a Bitcoin-centric treasury model.
• The company has established strong relationships with high-profile clients like NASA and the Department of Defense, leveraging its proprietary carbon fiber thermal management technology for mission-critical applications.
• While revenue is growing, the company remains unprofitable with significant cash burn, and its recent foray into Bitcoin introduces a new layer of volatility and risk to its financial profile.

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• Advanced Micro Devices (AMD) reported a robust third quarter in 2025, showcasing significant revenue growth across its business segments driven by strong product demand.
• For the quarter, AMD’s revenue increased by 36% year-over-year, reaching $9.2 billion.
• This growth was broad-based, with strong performance in the data center, server, gaming, and PC segments.

• Adobe Systems Incorporated has reported strong financial results for the third quarter of fiscal year 2025, showcasing continued double-digit growth in both revenue and profitability, driven largely by its strategic emphasis on artificial intelligence (AI).
• The company saw record revenue of $5.99 billion, marking a 10% increase year-over-year, while GAAP earnings per share reached $4.18 and non-GAAP earnings per share was $5.31, reflecting an impressive 14% growth.
• The incorporation of AI into Adobe’s product suite has been a significant focus, as exemplified by the deployment of AI innovations across its flagship Creative Cloud applications like Photoshop, Illustrator, and Premiere Pro.

• Astera Labs delivered strong third-quarter results for fiscal year 2025, surpassing their expectations with a notable increase in revenue and profitability metrics.
• The company’s quarterly revenue reached $230.6 million, marking a 20% increase from the previous quarter and a remarkable 104% growth compared to the same period last year.
• This significant growth was driven by broad-based performance across its product lines, including signal conditioning, smart cable modules, and switch fabrics.

• DRAM has jumped 172 % YoY and is still climbing; another 30–50 % hike is baked into Q4, wiping out the 4–6 % operating margins most PC OEMs live on.
• Intel’s soldered-down LPDDR5X, once hated for killing the lucrative RAM-up-sell, now locks the memory cost inside the processor.
• With memory inflation off their books via a safe margin play, OEMs can hold notebook ASPs and guidance

• Context: The Axis Bank (AXSB IN) vs. ICICI Bank (ICICIBC IN) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long ICICI Bank (ICICIBC IN) and short Axis Bank (AXSB IN) targets a 5% 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.

• Live Nation Entertainment recently discussed its performance and strategy during its investor meeting, highlighting both opportunities and challenges facing the company.
• Live Nation, a dominant player in the live entertainment industry, has projected continuous growth in its key markets, leveraging global expansion and consumer trends.
• One of the significant highlights is the company’s outlook on the industry.

• Palo Alto Networks recently discussed their fourth quarter financial results, detailing both positive achievements and certain challenges.
• The company reported a significant growth trajectory, crossing the $10 billion revenue mark, a first for a dedicated cybersecurity company.
• This milestone reflects the successful execution of a long-term strategy focused on preemptive cybersecurity advancements tailored to match the evolving market landscape.

• Leidos Holdings, Inc., a prominent player in the defense, aviation, information technology, and biomedical research fields, has reported a solid financial performance for the third quarter of 2025.
• The company continues to display resilience in navigating a dynamic and uncertain macroeconomic landscape, bolstered by its strategic initiatives and governmental partnerships.
• Leidos reported a 7% year-over-year increase in revenue to $4.47 billion, illustrating strong top-line growth despite challenges such as the government shutdown and previous headwinds from efficiency reviews.

• Right On Co. Ltd. is a jeans and casual wear retailer facing a prolonged period of declining revenues and significant financial losses, driven by intense competition and shifting consumer preferences in the Japanese apparel market.
• Despite a challenging top-line trend, the company has shown some recent, albeit inconsistent, improvement in net income, suggesting that cost control measures may be taking effect. However, operating and free cash flows remain deeply negative, raising concerns about long-term sustainability.
• The company’s strategy is centered on its core competency in denim, leveraging both national and private brands, and optimizing its nationwide network of stores, which are primarily located in shopping centers. A pivot towards enhancing e-commerce and adapting product assortments to local tastes is critical for a potential turnaround.

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• Microsoft has significantly course corrected on their compute capacity build out, demurred on their right of first refusal for OpenAI compute demand and adopted a risk off “fungible” compute strategy
• Mr. Nadella thinks AGI as more hype than substance, “jagged” intelligence will remain problematic for a longer, and the true measure of AI success will be measured by GDP growth
• Microsoft stopped reporting AI-driven ARR when the number hit $13 billion six months ago, but why? Broadly deploying AI into productivity tools is a marathon not a sprint.

• The market waited with bated breath as NVIDIA released their quarterly earnings yesterday on 19th November, 2025. To almost no one’s surprise, they beat the estimates again.
• The company is a juggernaut to say the least and has added $1.9 Trillion in market cap in the last 8 months!
• That is more than Tesla or Meta’s market cap themselves. The statistics are almost unbelievable.

• NVIDIA’s AI Factory Buildout Signals Multi-Year Demand for Taiwan’s Supply Chain
• TSMC’s Growth Outlook De-Risked by NVIDIA’s Smooth Transition to GB300
• NVIDIA’s Networking Segment Surge Expands System-Level Product Integration Opportunity for Taiwan Ecosystem

• NVIDIA Results: Taiwan Take-Aways — Demand Visibility Implies Strength for Key Suppliers 
• NVDA Strong Quarter, Strong Guidance, Consensus ~20% Too Low, Stock Is Not Expensive 
• Silicon Valley’s Substrate — ASML, TSMC Slayer Or Ideological Pipe Dream? 

• Oriental Watch (398 HK) maintained its dividend yield of ~12% (annualized), declaring 20.8 HKD cents of dividend for H1FY26. Cash and Investments were ~ HKD1 billion (60% of market cap).
• The company highlighted that the environment is challenging, given trade wars and tempered HK/Chinese demand. On our conservative numbers, the stock trades at 8.6x FY26PE. 
• Oriental Watch (398 HK)  will maintain its high dividend payout ratio of ~100%. Over the past 8 years, the company paid dividends of 3.8 HKD/share (> the current share price).

• In this insight, we discuss how Olive Young is likely to be a serious long-term threat to Ulta Beauty (ULTA US) (market cap of US$22.3 billion) in the United States. 
• CJ Corp is the largest shareholder of CJ Olive Young. On 19 November, CJ Olive Young announced that it plans to open its first store in California in May 2026.
• There is a growing probability that CJ Olive Young could successfully grow its business in the US, especially due to the continued strong demand for Korean cosmetics.

• Asian Paints achieved a 7-quarter high in Q2FY26 with 10.9% domestic volume growth, driven by easing raw material costs and strategic integration, leading to a 2% margin expansion.
• Despite heavy monsoons, strong execution drove a double-digit volume rebound, signaling stabilized consumer demand. This coupled with a key competitor’s executive loss, validates the firm’s defensive market position.
• Asian Paints’ strong performance deserves a premium valuation but justifying it hinges on the perfect execution of its backward integration project and defending its competitive position.

• Arista Networks reported strong financial results for the third quarter of 2025, achieving a record revenue of $2.31 billion, a year-over-year increase of 27.5%.
• This growth was supported by the increasing demand for their networking solutions, particularly in the AI and cloud segments.
• Notably, Arista’s software and services accounted for approximately 18.7% of the quarter’s revenue, reflecting the company’s strategic emphasis on diversifying its revenue streams beyond hardware.

• Sa Sa International Hldgs (178 HK)‘s 1H FY25/26 profit came in at the top-end of the guidance. Its 3Q sales growth has so far increased 11.3%, a further acceleration.
• Hong Kong and Macau should capture some of the diverted traffic as Sino-Japanese relations soured, while a weaker USD, as rates are cut, should make shopping cheaper.
• With its ROE reaching 10-13% in FY26-28F (the best ones since FY21), its 5-year-low P/B multiple makes the stock a bargain.

• Formosa Prosonic announced an 80-cent Special Dividend as the management decided to return excess cash
• 3rd quarter results showed EPS of 7.92 cents, though there is a gain on the sale of PPE of 35% of profits
• Management but given the stock trading below cash we remain positive on the stock

• On 20 October, Murakami Group reported they’d gone over 5% in cash/asset-rich DeNA (2432 JP). Not easy with insiders+Crossholders at 39%, passive at 24%. But not impossible. 
• On 30 October, they reported they’d gone to 6.31% on 23 October (four days before they reported the 5%. 
• As reported here before, Murakami-san sometimes does what might charitably be called a headfake, less charitably a Pump ‘n Dump. 

• Rapidly shifting technology could cause cable demand to plunge by 50% per unit of data center capacity as 800g becomes standard.
• We don’t anticipate any negative surprises in the coming 1-2 quarters, but we think consensus is overestimating post-3/26 EBIT by at least 20%.
• Even after a tech-led sell-off, at 25x EV/EBITDA, there is still no room for this kind of error. 

• Equity placing strengthens Hongqiao’s balance sheet, cuts refinancing risk, and supports Yunnan’s low-carbon capacity migration.
• FY25–27 forecasts updated: modest EPS dilution offset by lower interest costs and improved cash generation.
• Valuation remains discounted vs global peers despite first-quartile costs, rising renewable mix, and improving aluminium market fundamentals.

• NVIDIA Corporation’s recent earnings for the second quarter of fiscal 2026 highlighted a record quarter in terms of total revenue, driven by widespread adoption of its comprehensive product suite across various sectors.
• The company reported a total revenue of $46.7 billion, surpassing its expectations with substantial growth noted in its data center segment, which increased by 56% year-over-year.
• The rollout of new technology, including the Blackwell platform and GB300 systems, was cited as a key driver of this growth, facilitating NVIDIA’s expansion in the AI infrastructure space.

• BWX Technologies, Inc. reported robust financial performance in the third quarter of 2025, although there are notable elements that both support and challenge its broader financial landscape.
• The company highlighted a 12% rise in organic revenue alongside approximately 20% growth in both adjusted EBITDA and earnings per share, indicating effective operational execution.
• A robust book-to-bill ratio of 2.6 further underscored BWXT’s booking strength, driven by significant contracts in national security, particularly in defense fuels and high-purity depleted uranium.

• Palantir Technologies Inc. has recently reported an exceptionally strong set of financial results for Q3 2025, marked by significant revenue growth and an impressive expansion of its U.S. commercial business.
• The company reported a year-over-year revenue growth of 63%, with particularly notable performance in the U.S. where revenue increased by 77%.
• A major contributor to this success was the expansion of Palantir’s U.S. commercial segment, which grew by 121% year-over-year.

• CyberAgent Inc (4751 JP) reported 4QFY09/2025 results last week. Full-year and 4QFY09/2025 revenue and OP beat consensus as well as guidance by a huge margin.
• Despite reporting a set of strong results, CA’s share price has been down 15% which we think was driven by the company’s cautious guidance for FY09/2026.
• With a strong pipeline of gaming titles coupled with global expansion of English versions of newly released titles, we think CA’s FY09/2026 guidance is overly conservative.

• TSMC: 24.5% Premium; Near Level to Open Fresh Short of ADR Spread
• ASE: +5.7% Premium; Good Level to Short the ADR Spread
• ChipMOS: -1.7% Discount; Near Discount Level to Go Long the ADR Spread

• We upgrade BolsaMex to a buy rating; we believe that it is too cheap to ignore and that it has sound growth credentials with its healthy share of post-trade revenues
• We downgrade B3 Exchange to a neutral from buy, after its strong share price performance since mid-October lows; we feel it is still attractive but not as compelling as BolsaMex
• We upgrade BSE to a neutral rating from sell despite it trading on rich fundamental valuations; India’s strong IPO pipeline is one major factor in de-railing our sell recommendation

• Japan–China relations have sharply deteriorated after Takaichi’s Taiwan remarks, triggering diplomatic retaliation, security tensions, and the worst bilateral rift since 1972.
• Asics’ ¥90bn market-cap drop reflects concerns over its heavy reliance on Chinese consumers, both domestically and through inbound tourism, which drive roughly a quarter of profits.
• Markets may be underestimating the risk of prolonged geopolitical strain, threatening Asics’ 2026 outlook despite record current performance and secure near-term guidance.

• Context: The BHP Group (BHP AU) vs. Rio Tinto (RIO AU) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long BHP Group (BHP AU) and short Rio Tinto (RIO AU) targets a 4% 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.

• Xiaomi’s total revenue grew by 22% in 3Q25, which mainly came from the startup vehicle business.
• The company well controls the gross margin of the vehicle business.
• We believe XM has an upside of 60% for the yearend 2025.

• Revenue growth in Q3 (+15.5% Y/Y) held up reasonably well for Trip.com
• But core margins continue to deteriorate: Adjusted EBITDA margin down -120 bps Y/Y
• We still feel TCOM shares are pricey, and that earnings growth is unimpressive

• In 3Q25, total revenue increased by 16% YoY with hotel booking up by 18% YoY and transportation commission up by 12% YoY.
• Overseas travel continued to recover and consumption shrink does not impact TCOM much.
• We believe the stock has an upside of 29% for the next twelve months.

• AvePoint is a global subscription software company that helps organizations manage, protect and govern collaboration data sitting in cloud platforms such as Microsoft 365 and other SaaS tools.
• Its platform combines backup, data protection, governance and modernization so that customers can keep using these tools and newer AI features without losing control of security or compliance.
• In 2024 it generated US$330m of revenue, up 22% from 2023, with SaaS contributing roughly 70% of the total and recurring revenue 87%.

• Jiangsu Lopal Tech is undergoing a significant strategic pivot from its traditional automotive fine chemicals business to the high-growth, yet volatile, lithium iron phosphate (LFP) cathode materials market for electric vehicle (EV) batteries.
• This transition has fueled exceptional revenue growth but has also led to severe profitability challenges, with the company posting significant net losses and negative margins over the past two years, driven by raw material price volatility and intense competition.
• The company’s financial health is under pressure, evidenced by negative operating cash flow in recent periods and a net current liability position. Future success hinges on stabilizing LFP profitability, managing cash flow, and navigating the highly competitive dynamics of the EV supply chain.

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• Syrma SGS Technology is acquiring a 60% stake in Elcome Integrated Systems, with a path to 100% via performance-linked earn-outs, alongside Elcome’s simultaneous acquisition of Navicom Technology.
• This strategic move marks Syrma SGS’s formal entry into the high-barrier, long-cycle Indian defence electronics market, offering diversification from its core EMS business and aligning with India’s “Aatmanirbhar Bharat” initiative.
• The accretive nature, revenue visibility of over INR 400 crore, and design-led capabilities gained position Syrma SGS for a structural re-rating.

• Anjoy Foods Group (2648 HK)‘s rally since reporting 3Q25 results is prompted by solid revenue and margin recovery. Its HA discount has narrowed 6.1pp from IPO. 
• Sales model and geographical optimisation has driven business outlook. With projected EPS CAGR of 10.4%, it is now in line with the sector momentum.
• Its PEG of 1.4x is below peer’s average of 1.9x. With net cash equalling 15.1% of its share price, it can deliver a decent 5.4% FY26F dividend yield.

• Bright Horizons Family Solutions recently reported its third-quarter financial results, delivering strong performance with notable growth across its key service segments.
• Revenue increased by 12% to $803 million, driven by significant demand for its education and care benefits.
• Adjusted earnings per share rose by 41% to $1.57, exceeding the company’s expectations.

Datatec reported strong growth in underlying volume, gross profit and adjusted EBITDA in H126, driving a 43% year-on-year increase in underlying EPADR (uEPADR). The company has benefited from growing demand for cybersecurity and the start of technology refreshes driven by AI adoption. These structural growth drivers support a positive outlook for the remainder of FY26 and into FY27, with management sounding the most optimistic it has in recent years. We have upgraded our forecasts to reflect better operational performance and the positive demand environment, lifting uEPADR by 18.2% for FY26, 21.9% for FY27 and 24.6% for FY28.