Equity Bottom-Up Archives | Page 7 of 222 | Smartkarma

• Federal Reserve expected to reduce interest rates amid labor market weakness and inflation concerns
• Fed officials divided on future rate cuts, with market anticipating continued easing cycle and potential changes in personnel influencing decisions

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• The growth rate of total revenue accelerated to 245% YoY in 3Q25.
• Within China revenue, the growth rates of both online and offline accelerated in 3Q25.
• The company highlighted that revenues surged significantly in America and Europe.

• TSMC: +22.1% Premium; Continue to View 24% or Higher as Level to Short From
• UMC: +0.4% Premium; Results Coming… Wait for More Extreme Spread Levels
• ASE: +0.4% Premium; Near Good Level to Go Long the ADR Spread

Key points (machine generated)

• Enterprise Products Partners (EPD) operates a comprehensive network for transporting and processing natural gas liquids, crude oil, and petrochemicals as a master limited partnership.
• EPD’s competitive edge comes from its vertically integrated system, enhancing market access and reliability for major industry customers, particularly in Texas and along the Houston Ship Channel.
• With a 7.0% yield and strong governance, EPD is well-positioned to benefit from U.S. petrochemical growth and maintains a stable distribution supported by robust cash flow.

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Key points (machine generated)

• Toast faces concerns over overestimated unit economics as it expands into new verticals, particularly with Enterprise customers like Applebee’s.
• Projections for fiscal year 2026 appear unrealistic given Toast’s high valuation of approximately 45x forward EBITDA, risking market re-evaluation.
• Despite challenges with some software modules, Toast has significantly increased its market share among U.S. restaurants from under 5% to over 15%.

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.

• We met with the management of Dream International (1126 HK) in Hong Kong. The company is riding a hectic phase with its Vietnam operations running at full capacity.
• Management is evaluating capacity expansion in Indonesia and Vietnam for plastic and plush toy production serving China, targeting an aggregate capacity increase of approximately 20–30% to meet demand.
• The stock has pulled back and trades at 8.9x PE, 5.1 EV-EBITDA, with a 6.2% dividend yield and 21% of the market capitalization in cash, and 10 Yr-Avg ROCE ~20%. 

• BeNext-Yumeshin Group is a major player in the Japanese human resource services industry, specializing in the dispatch of engineers and technical staff across several key sectors.
• The company has demonstrated a strong growth trajectory in revenue and net income, supported by a robust dividend payout history, making it an attractive proposition for income-oriented investors.
• Key challenges include navigating the highly competitive and fragmented domestic market, managing risks associated with economic cyclicality, and adapting to evolving labor regulations in Japan.

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• Doosan Enerbility is strategically pivoting towards eco-friendly energy solutions, including gas turbines, renewables (wind, hydrogen), and small modular reactors (SMRs), positioning itself to capitalize on the global energy transition.
• The company maintains a strong, albeit cyclical, position in the global power and water plant construction market, with core competencies in nuclear reactors, turbines, and desalination technologies.
• Financial performance is characterized by revenue growth but significant volatility in profitability and cash flow, alongside a high valuation (P/E > 100x) that presents a risk for investors.

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• Aniplus is increasingly becoming a leading player in the anime contents production and distribution in Korea. The company’s anime contents have potential to expand globally. 
• Valuations are attractive. It is trading at P/E of 9x in 2025 and 7.9x in 2026 based on consensus earnings estimates. 
• If we use P/E of 15x on 2026E net profit of 26.9 billion won, this would suggest a market cap of 404 billion won (95% higher than current market cap). 

• COSCO SHIPPING International (Singapore) reported a 10.6% revenue increase in 1H 2025, driven by logistics and marine engineering growth.
• The company is constructing Jurong Island Logistics Hub Phase 2, with completion expected in Q4 2026, enhancing logistics infrastructure.
• Key risks for 2025 include potential global trade slowdown, operational disruptions, and regulatory changes affecting logistics and marine services.

• Levi Strauss & Co. presented a solid performance for its fiscal third quarter of 2025, characterized by notable revenue growth and strategic business transformations.
• The company reported a fourth consecutive quarter of high single-digit organic revenue growth, underscoring its continued momentum.
• A key driver of this success is Levi Strauss & Co.’s shift towards a direct-to-consumer (DTC) approach, as the DTC channel posted a strong 9% increase in sales, powered by higher units per transaction, average unit retail, and full-price sales.

• GitLab shares surged sharply — up roughly 11 % in intra day trading — after market rumors surfaced that Datadog is exploring a potential acquisition offer above $60 per share.
• The news emerged from financial media reports, citing insiders that Datadog is working with bankers to evaluate a bid over $60.
• The spike reflects renewed investor speculation about a takeover possibility, following a prior wave of M&A interest in 2024 when GitLab was reported to have entertained sale discussions.

• Remain long into upcoming earnings release. We maintain our Structural Long rating ahead of VEON’s FY3Q25 results (expected to be released mid-November). Our $78 target price implies 50% upside.
• Kyivstar IPO related and Kyrgyztsan divestiture related one-offs. Reported 3Q25E profit likely includes ~US$250m in non-cash one-offs, comprising ~US$150m related to the Kyivstar listing and ~US$100m from VEON’s Kyrgyzstan divestiture.
• We expect digital growth to remain in the 50% YoY range. Digital revenue growth should continue at a high rate, led by JazzCash in Pakistan and Uklon in Ukraine.

• Domino’s Pizza, Inc. reported its financial results for the third quarter of 2025, marked by strategic growth and various initiatives under its “Hungry for MORE” strategy.
• The company experienced significant growth in its U.S. market across several key performance areas, including carryout, delivery, and order count, ultimately resulting in increased market share.
• The results were bolstered by several key promotions, particularly the “Best Deal Ever,” which was a cornerstone of Domino’s success during the quarter.

• BYD is still the largest sedan maker in China, but its deliveries began to decline.
• Geely is the second largest car maker, but its deliveries surged dramatically.
• We believe Geely is the most promising company when the sedan market gets concentrated.

• Delta Air Lines reported a strong performance for the September quarter of 2025, showcasing growth in several vital areas.
• The company achieved a revenue increase of 4% year-over-year to $15.2 billion, driven by significant gains in premium, corporate, and loyalty segments.
• This result aligns with its strategy to leverage Delta’s brand power, focusing on improving the customer experience and enhancing operational reliability.

• CSX Corporation’s third quarter results present a nuanced picture of the company’s current operations, underlying challenges, and future prospects.
• During the call, CSX’s leadership highlighted several operational successes, yet acknowledged ongoing market challenges.
• The company’s operational performance has notably improved, with train velocity reaching its highest level since early 2021, and dwell time and daily cars online showing significant reductions.

• The artificial intelligence revolution is reshaping the U.S. energy landscape, and Quanta Services is emerging as one of its key beneficiaries.
• In Q2 2025, Quanta posted impressive results including double-digit revenue and earnings growth, a record $35.8 billion backlog, and raised its full-year guidance for revenue, adjusted EBITDA, and EPS.
• These gains were underpinned by rising electricity demand as data centers and AI infrastructure proliferate nationwide.

• CSX Corporation’s third quarter results present a nuanced picture of the company’s current operations, underlying challenges, and future prospects.
• During the call, CSX’s leadership highlighted several operational successes, yet acknowledged ongoing market challenges.
• The company’s operational performance has notably improved, with train velocity reaching its highest level since early 2021, and dwell time and daily cars online showing significant reductions.

• Binhui, a China-based clinical-stage biopharma company, is looking to raise at least USD 100 million via a Hong Kong listing. Huatai, CMB, and BOCI are the joint sponsors.
• In this note, we look at the company’s core product, BS001, and key products BS006 and BR003.
• We also look at the company’s pre-IPO investors and management team.

• Earnings momentum accelerating driven by gold volume +20% and mine margin expansion to 60.6%, supported by disciplined cost control and strong operating cash flow.
• Copper–gold dual exposure provides structural upside with spot torque to Cu ~US$10,800/t and Au ~US$4,200/oz, reinforcing earnings visibility into FY26–27.
• Zijin Gold spin-off unlocks value via clean asset separation, improved capital efficiency, and SOTP rerating potential to HK$41–42/sh under spot scenario.

• Pending Acquisition by Cosette Pharma: Mayne Pharma‘s future is largely defined by a pending acquisition by Cosette Pharmaceuticals, which aims to create a leading entity in the U.S. Women’s Health and Dermatology sectors. However, the deal is subject to a legal dispute initiated by Cosette, creating significant uncertainty around its completion.
• Strategic Focus and Turnaround: Following a period of financial distress and a major asset sale in 2022, management has refocused the company on its core specialty areas of Women’s Health and Dermatology. This strategy has led to significant improvements in recent financial performance, with strong revenue growth and a return to positive operating cash flow.
• Highly Competitive Landscape: The company operates in the intensely competitive generic and specialty pharmaceutical markets. While it possesses a portfolio of branded products, it faces constant pricing pressure from larger competitors and other generic manufacturers, necessitating strong commercial execution.

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• Context: The ICICI Prudential Life (IPRU IN) vs. ICICI Lombard General Insurance (ICICIGI IN) price-ratio has deviated two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long ICICI Prudential Life (IPRU IN) and short ICICI Lombard General Insurance (ICICIGI 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.

• Wrkr Ltd (ASX:WRK) offers compliance solutions for Australian superannuation contributions and payroll including member onboarding, super payments, messaging and employee validation.
• We have taken the opportunity to incorporate the recent $15m capital raise into our numbers and fine tune client migration timing, which has resulted in reductions to our FY26 estimates, but an increase to our FY27 revenue forecasts as AustralianSuper (set to migrate between February and June 2026) is larger than our previous user assumptions.
• We also take a more aggressive view on near-term cost growth relative to revenue.

• GoodRx operates a leading digital healthcare platform in the U.S., capitalizing on the opaque and high-cost prescription drug market by offering price transparency and discounts, primarily earning revenue from Pharmacy Benefit Managers (PBMs).
• The company faces a highly competitive and evolving landscape with threats from direct competitors, large new entrants like Amazon, and disruptive models such as Mark Cuban’s Cost Plus Drugs, alongside significant reliance on a concentrated number of PBM partners.
• Future growth hinges on diversifying revenue streams beyond prescription transactions into pharma manufacturer solutions, subscription services (GoodRx Gold), and telehealth (GoodRx Care), while navigating regulatory risks and strengthening direct relationships with pharmacies.

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• 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 elevenpair trade opportunities across three markets and seven 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.

• Istyle Inc (3660 JP) is a cosmetics retailer under the name @Cosme, but it is also an exemplar of how to build a true omnichannel business.
• Its effective use of the deep data available from the 10 million users on its core @Cosme platform is its key asset.
• It now targets ¥83 billion in sales this year, using data to expand into supplements and Femtech.

• Context: The Scentre Group (SCG AU) vs. Stockland (SGP AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Scentre Group (SCG AU) and short Stockland (SGP AU) targets a 3% 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.

• Price momentum and volume growth both remained weak in September 
• Mideast ceasefire raises possibility of Suez Canal re-opening in 2026
• Expect pricing to remain weak; Suez re-start would likely lead to losses

• Regulation steady, not softer; policy silence reaffirms the 24% cap as industry standard, with industry participants electing to comply with immediate effect.
• Asset stress rising; delinquencies peak as low-tier borrowers struggle, but QFIN’s disciplined underwriting and data scale set the stage for recovery in 2026e.
• Leadership and capital strength, market-leading balance sheet and strong commitment to shareholder returns underpin confidence through the transition phase.

• Shiseido’s share price dropped 70% over the past six years, compared to a 110% gain by Topix, but the stock just crossed its 200-day MAV. Time for another look?  
• In our view, the stock lacks most of the required criteria for a successful turnaround, and reeks of all the important criteria for failure. 
• Shiseido’s stock already prices in a 50% earnings recovery. To be compelling, the forecast needs to be 4 standard deviations above the mean, or the price needs to decline 30%.  

• OpenAI just signed a deal with Broadcom to deploy ten gigawatts of OpenAI designed AI accelerators targeted to start in H2 2026, and to complete by end of 2029.
• OpenAI’s AMD & Broadcom deals undermine the credibility of the NVIDIA deal. Where exactly is all the money going to come from?
• In partnering with AMD and Broadcom, OpenAI has given huge credibility to AMD as a GPU competitor and Broadcom as a custom accelerator competitor. Two big headaches for NVIDIA. Ouch!

• Despite having strong operational performances, we think ESR KS REIT is currently facing 2 headwinds, 1 structural issue and 1 cyclical issue
• Korea listed companies are generally suffering from under-valuation and excessive equity raise.  The equity raises, which are done at discount to NAV, is value destructive
• In the physical market, we think the logistics market is facing oversupply issue, slow absorption and protected recovery.

• Jardine Matheson Holdings (JM SP) has proposed to take Mandarin Oriental International (MAND SP) private
• While the deal has a high chance of success, given the 88% ownership of MAND by JM, it undervalues Mandarin Oriental significantly.
• Jardine is effectively paying for the fair value of One Causeway building and is getting global hotel operations for a bargain price.

• The Q3/25 production update was taken well by the market, with iron ore output near flat yoy, copper jumping 10%, and moderate growth for aluminum, alumina and bauxite
• Some reorganization has started under new CEO Simon Trott, with IOC reported with the core iron ore segment, and two divisions, Borates and Iron and Titanium, placed under review 
• We see risks from major iron ore market shifts and a potential cyclical downturn hitting copper and aluminum, and it could be fully valued on our below-consensus metal price estimates 

• The H&M Hennes & Mauritz AB Group’s earnings report for the third quarter of 2025 presents both promising advancements and ongoing challenges typical of the fashion retail industry in a dynamic global market.
• The company recorded a 2% sales growth in local currencies despite reducing its store count by 4% from the previous year.
• This growth was supported by improvements in their digital platform, indicating successful digital transformation efforts that are resonating well with customers worldwide.

• Merit Medical Systems has made headlines with its definitive agreement to acquire the C2 CryoBalloon technology from Pentax for $22 million—$19 million in upfront cash and up to $3 million in milestone-based contingent payments.
• This move, expected to close in Q4 2025, marks a strategic push by Merit into the gastrointestinal (GI) endoscopy space, targeting patients with Barrett’s esophagus and other GI disorders.
• This asset purchase follows a broader industry trend of tuck-in acquisitions aimed at boosting specialty portfolios while maintaining capital discipline.

• S&P Global is making strategic waves again with its recent agreement to acquire alternative assets data provider With Intelligence for $1.8 billion.
• The transaction, announced in October 2025, marks another major step by S&P to extend its footprint beyond public markets and deepen its capabilities across private markets.
• Expected to close either later in 2025 or early 2026, the deal is subject to regulatory approvals and customary closing conditions.

• Estée Lauder Companies is reportedly exploring a divestiture of its cosmetics brand Too Faced, according to a recent Axios Pro report.
• Acquired in 2016 for $1.45 billion, Too Faced was once seen as a critical pillar of Estée’s efforts to appeal to younger, trend-conscious consumers through multibrand retailers like Sephora and Ulta.
• However, performance in the color cosmetics category has lagged, especially following pandemic-related disruptions and intensifying competition from newer indie entrants.

• The “turning point” occurs as share price of innovative drug sector is pulling back. Many companies would see valuations halved – potentially more than once.The decline is far from over.
• The current main goal of biotech is to turn losses into profits ASAP. If it fails to make a profit, it may not be recognized by the market.
• Due to the concerns on Ping An Healthcare and Technology (1833 HK)’s business model, peak revenue scale could be just RMB8 billion. In other words, Ping An Healthcare is overvalued.

• Company started 16 years ago in Southeast Asia market
• Operates three businesses: Garena, Shopee, Money
• Transitioned from video game distributor to $100 billion market cap company through mobile Internet revolution and focus on local market sector

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• Portrait Research helps identify businesses that fit specific frameworks
• Customized research reports can be generated using Portrait
• Amphenol is an industrial giant in the business of making connectors, sensors, and interconnect systems for various electronic applications

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• Nestle is a massive global food and beverage company facing a meltdown and turmoil, with recent scandals and leadership changes
• The consumer goods sector, including companies like Nestle, is struggling due to consumer behavior changes post-Covid and cost of living crisis
• Multinational conglomerates in the industry are facing investor pressure to reevaluate their diversified business models and focus on their core profitable brands

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• Broadcom shares surged nearly 10% after the semiconductor and software giant announced a landmark deal with OpenAI to build and deploy 10 gigawatts of custom AI accelerators.
• Under this multibillion-dollar agreement, OpenAI will design the chips while Broadcom provides connectivity and Ethernet components—a strategic collaboration set to roll out from late 2026 through 2029.
• This announcement came just weeks after a broader AI spending spree by OpenAI, including contracts with Oracle, Nvidia, and AMD.

• Bloom Energy’s second quarter 2025 results highlighted both robust growth and certain areas of strategic focus.
• The call was led by CEO K.R. Sridhar, who shared that this was the most profitable second quarter in the company’s history.
• Bloom Energy is seeing increased demand driven by the shift towards AI and data center needs for reliable and rapidly deployable power solutions.

• Accenture is accelerating its push into generative AI and enterprise intelligence platforms with the acquisition of U.K.-based technology consultancy Decho, a strategic partner of Palantir Technologies.
• Announced in October 2025, this bolt-on deal brings Accenture over 40 specialist engineers proficient in Palantir’s Foundry and Artificial Intelligence Platform.
• While financial terms remain undisclosed, the acquisition underscores Accenture’s growing appetite for AI-driven capabilities and data-centric transformations across public and private sectors.

• TeraWulf has captured Wall Street’s attention with a high-stakes move to raise $3.2 billion via senior secured notes due in 2030—marking one of the largest bond deals relative to market capitalization in 2025.
• The capital will finance the rapid buildout of its Lake Mariner data center in upstate New York, which is now tied to a landmark hyperscale hosting deal with Fluidstack, underpinned by Alphabet’s Google.
• The bond offering, representing more than half of TeraWulf’s $5.7 billion market cap, comes on the heels of transformative transactions that position the company at the center of next-gen AI infrastructure.

• Navitas Semiconductor has become one of Wall Street’s most explosive semiconductor stories of 2025, surging over 60% in just four days after announcing deeper collaboration with Nvidia on next-generation AI power infrastructure.
• Following a 21% gain on Monday and another 17% on Tuesday to $11.63, the gallium nitride (GaN) and silicon carbide (SiC) chipmaker has cemented itself as a critical player in the AI hardware supply chain.
• The company’s new power devices will enable Nvidia’s planned 800-volt data center architecture—designed to support megawatt-scale AI computing platforms with superior efficiency and scalability.

• Wise plc, the company covered in this call, delivered a financial year marked with both growth and strategic moves, contributing to its mission of transparent, low-cost international money transfers.
• The company continues to gain momentum, driven by its unique infrastructure and a strong market presence, even as it aims to lower costs and improve service speed.
• During the fiscal year, Wise experienced a 21% increase in active customers, indicating a healthy customer acquisition rate primarily through word of mouth, which accounted for over 70% of new clients.

• For 4Q25, revenue guidance is US$32.2–33.4 billion, equivalent to NT$985.3–1,022.0 billion (based on an assumed FX rate of 30.6).
• N2 will begin mass production later this quarter with good yields, and volume will ramp in 2026 driven by both smartphone and HPC/AI applications
• Smartphone inventory has returned to seasonally healthy levels, with no signs of early pull-ins.

• The long-standing divorce case between SK Group Chairman Chey Tae-won and his estranged wife Roh So-young refuses to end.
• Rather, the Supreme Court of Korea overturned a lower court ruling that ordered Chey Tae-won to pay 1.38 trillion won ($973 million) to Ro So-young.
• Our NAV valuation of SK Inc suggests implied market cap of 25.8 trillion won or target price of 355,918 won per share, which is 63% higher than current levels.

• TSMC 3Q25: Margins Surge as Pricing Power Strengthens Ahead of 2nm Ramp
• AI Megatrend Continues to Reshape Demand – 40% CAGR Expected for AI Accelerators Through 2029
• Maintain Structural Long Rating — TSMC Remains Inexpensive vs. Tech Companies Highly Dependent on It

• Operating Margin 50.6%, Guidance 46.5%, Consensus 47.4%.  3Q net income 11% above Consensus. 4Q25 Guidance is ~8% above Consensus.
• TSMC increase 2025 revenue growth from ~30% to ~35% in US$, mentioning AI demand outlook. CFO mentions that N2 structural profitability is better than N3 (imo large wafer price increase).
• The stock looks expensive at +1 std dev but 1) Consensus looks too low for 2026-27 with 17%, 21% EPS growth YoY. Remember, 2025 Operating Profit increase over 40% YoY. 

• Growth: EBITDA mix improves as aluminium integration + captive coal lift margins, silver ramps, and zinc stays cash generative; deleveraging begins FY27 as cash flows strengthen.
• Commodity Play: Positive leverage to aluminium, zinc, and silver prices; cost base falling, not rising — rare margin tailwind in a metals cycle.
• Valuation + Yield: Trades cheap vs peers; rerating optionality + double-digit dividend yield provides downside protection with asymmetric upside.

• Keurig Dr Pepper (KDP) has jolted the global beverage industry with a bold two-step maneuver that may reshape its corporate DNA.
• In a surprise announcement, KDP revealed plans to acquire global coffee giant JDE Peet’s for an enterprise value of $23 billion, followed by a spin-off to create two stand-alone public companies—Global Coffee Co. and Beverage Co. The all-cash acquisition is priced at a 20% premium to JDE Peet’s market price and values the target at approximately 13x 2026 EV/EBITDA pre-synergies or 10.5x post-synergies.
• KDP aims to finalize the acquisition by the first half of 2026 and pursue a tax-free spin-off of the coffee business soon thereafter.

• Polaris Inc. has announced the sale of its iconic Indian Motorcycle business to private-equity firm Carolwood LP, a move expected to reshape the powersports manufacturer’s strategic focus.
• The divestiture, expected to close in Q1 2026, will result in a $1.00 uplift to Polaris’s annualized adjusted earnings per share (EPS), according to company statements.
• Indian contributed roughly $478 million, or 7% of revenues over the trailing 12 months ending June 30, 2025.

• Q325 revenues of €7.5 billion, slightly down on the prior quarter and towards the bottom end of the guided range
• Looking ahead, the company is forecasting fourth quarter revenues of €9.5 billion at the midpoint, a significant jump QoQ but again in line with prior expectations.
• Mood music improved, 2026 revenues “not be below 2025”, China sales soared to 42%, but will decline next year, 11% stake in Mistral gets ASML “closer to the AI world”

• Applied Digital jumped 28% on Friday after reporting stronger-than-expected earnings and announcing a landmark lease expansion with AI hyperscaler CoreWeave.
• The rally caps off a year-to-date stock surge of 391%, positioning Applied as one of the top-performing infrastructure stocks in 2025.
• For the quarter ended August 31, the company posted an adjusted net loss of $0.03 per share, dramatically narrower than the $0.16 loss expected by Wall Street.

• Positive Management tone, as always, but no material clarification on 2026 revenues: China down (back to “normal”), Low NA EUV increase, some High NA but that’s still  pre-production.
• ASML has many qualities: monopoly, litho intensity increasing. Downside risks: how low China revenue go, is Mngt still double counting TSMC + Intel capacity, expectations for High NA too high?
• ASML is a lot more expensive than AMD, NVDA, MU, SK, TSM for very low growth. I don’t like Broadcom for same reason: better Price / Growth in AMD, NVDA.

• OpenAI’s growth model relies on an intricate loop of vendor financing, aggressive forward contracts, and $80B+ in projected external capital.
• Long-Dated chip commitments seem less about immediate infra demand and more about bolstering OpenAI’s fundraising optics by showcasing secured access to future capacity.
• If credit tightens or execution slips, the weakest links—OEMs and private equity firms backing infra-hungry AI startups—may snap first, with cascading effects on Nvidia, AMD, and TSMC to follow.

Key points (machine generated)

• Plover Bay Technologies specializes in reliable internet connectivity for critical applications in challenging environments.
• The company has partnered with Starlink as their first Authorized Technology Partner to enhance multi-WAN bandwidth bonding and fail-over capabilities.
• CEO Alex Chan emphasized the mission to improve connectivity at Peplink’s global developer summit in Amsterdam.

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• GST removal on life and health insurance eliminates insurers’ input tax credit, forcing them to cut agent-commissions, severely hurting Policybazaar (POLICYBZ IN) , whose 68% revenue depends on these segments.
• PB Fintech could have faced revenue losses upto 4.4% and 65.7% Adj. EBITDA hit if it fully absorbs GST; even 50% absorption cuts Adj.EBITDA by ~35%, based on FY25 numbers.
• Moreover, trail revenues, mainly from health insurance, could shrink sharply, threatening PB Fintech’s high-margin revenue stream and delaying its INR 10 bn profit target beyond FY27.

• Smartphone units increase ~3% YoY, that’s slightly better than 1H26 at ~1.5%, but still low growth.   
• Premium replacement demand is solid (Samsung, iPhone 17).  Improvements in Emerging Markets (Xiaomi, Transsion, vivo).   
• Mediatek reports on 31 Oct, Qualcomm on 5 Nov.  Their Smartphone business isn’t a driver given tepid growth. New ventures revenue timeline is the question.

Key points (machine generated)

• Oil prices are at a 50-year low, raising investment concerns in a volatile market.
• The oil and gas sector faces challenges, making traditional investments risky.
• Investors can consider cautious engagement through call options, with the current gold/oil ratio indicating oil is exceptionally cheap.

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• Occidental’s USD 9.7 billion OxyChem divestment fast-tracks debt reduction but removes a steady earnings buffer, leaving the company more exposed to volatile oil market cycles.
• The sale strengthens Occidental’s balance sheet and strategic focus on upstream operations but sacrifices diversification, as the chemicals unit provided resilient cash flows during oil downturns.
• Executing the divestment amid a chemical sector downcycle appears poorly timed. Occidental will sell a profitable asset at a discount while crude prices remain subdued.

• TSMC: +27.3% Premium; Opportunity to Set Up ADR Spread Short During Taiwan Session
• UMC: +2.0% Premium; Wait for Slightly Higher Premium Before Opening Spread Short
• ASE: +2.6% Premium; Wait for More Extreme Swing Before Going Long or Short

• Dell Technologies is undergoing a strategic transformation that could redefine its growth trajectory, as it aggressively scales its AI-optimized infrastructure portfolio.
• At the forefront of this shift is Dell’s Infrastructure Solutions Group (ISG), which saw a 44% year-over-year revenue surge in Q2 FY2026, driven primarily by soaring demand for AI servers.
• The company now projects over $20 billion in AI server sales in FY2026, up from just $10 billion in FY2025, with expectations of crossing the $25 billion threshold by FY2027.

• Q3 Summary: Solid EBITDA beat with margin expansion to 12%, though top-line missed street estimates; core business KPIs broadly in line, with slightly soft ARPA growth.
• Thesis: Strong positioning in Japan’s underpenetrated SaaS back-office market, with regulatory tailwinds, operational leverage, and FY11/28 targets of ¥65B sales and ¥20B EBITDA. 
• Valuation: Stock trades near our ¥5,700 fair value (~6x EV/revenue); short-term upside limited, but long-term fundamentals remain attractive.

• Marks and Spencer has reported strong financial performance for the past year, with sales growing by 6.1% to £13.9 billion and a significant 22% increase in profit before tax and adjusting items, reaching £875.5 million.
• The company also improved its free cash flow, ending the year with net funds of over £400 million, which is a demonstration of robust financial health.
• These improvements position Marks and Spencer in its strongest financial state in nearly three decades.

• Back on 6 November 2024, we published an insight called 2025 High Conviction: Samsung Electronics. In this insight, we provide an update of Samsung Electronics.
• Samsung Electronics reported operating profit of 12.1 trillion won (up 31.8% YoY and 18.7% higher than consensus) in 3Q 2025.
• The final installment of the 12 trillion won+ inheritance tax is due in April 2026.

• Chinese government’s efforts to ban Hanwha Ocean’s five U.S. subsidiaries from conducting any transactions with organizations or individuals in China is likely to have material Negative impact on Hanwha Ocean.
• If Hanwha’s U.S. subsidiaries are banned from Chinese suppliers, they’ll need to source alternatives (Japan, Europe, or domestic U.S. firms), that could involve 20–50% higher costs with longer lead times.
• Basically, what’s going on is that the Chinese government wants to slow down the United States’ efforts to rebuild its shipbuilding sector with the help of Korean shipbuilders.

• The commerce landscape is about to undergo a structural transformation as PayPal and Alphabet’s Google join forces in a multi-pronged AI-driven payments partnership launching in Q4 2025.
• Announced in September, the alliance will embed PayPal’s checkout experience directly into Google’s ecosystem—across Google Cloud, Google Ads, Google Play, and select consumer-facing properties.
• At the same time, the two companies are co-developing AI frameworks to power agent-led transactions, where autonomous digital agents make purchases on a user’s behalf using PayPal data.

• Tata Consultancy Services has announced a bold USD 6–7 billion investment to build a 1 GW sovereign AI data center network across India, its most capital-intensive project to date.
• This move shifts TCS from labor-based IT services to AI-driven infrastructure, aligning it with global compute leaders and advancing India’s AI and data-sovereignty goals.
• TCS’s initiative could reshape India’s digital backbone, driving investment across allied sectors and marking a long-term re-rating opportunity for Indian tech toward infrastructure-led growth.

• Shares of fertilizer giant Mosaic Co. have been under significant pressure as the company grapples with dual setbacks — unplanned phosphate plant outages and ongoing macroeconomic headwinds tied to U.S. trade tariffs.
• On October 10, the company disclosed a meaningful production shortfall in its phosphate segment for Q3 2025, citing mechanical issues and utility interruptions that pushed preliminary volumes down to just 1.7 million tons, well below expectations.
• This comes on top of a challenging landscape in which U.S. tariffs have eroded the competitiveness of American fertilizer exports.

• Along with political turbulence, expectations of a near term BoJ rate hike may be diminishing; nonetheless, we believe that these rate hikes will, at worst, be delayed and not derailed
• We take profits on Mizuho in big caps and on Hirogin Holdings in mid-caps, downgrading these names from buy to neutral whilst generally retaining banks with higher levels of cross-holdings
• We maintain the following Japanese banks on buy ratings; in the big-caps, we keep Resona and Shizuoka and in the mid-caps we stick with Iyogin Holdings, Hokuhoku and Hachijuni

• Nanya Tech 3Q25: Rebounds to Profit Thanks to DDR4 Price Surge Windfall… But Underlying Structural Drivers Remain Unsteady
• The World’s DDR4 Shortage to Extends Pricing Spike Through 4Q25
• Nanya Technology vs SK Hynix — We Expect Relative Strength Ahead for SK Hynix Over Nanya Tech

• Peel Hunt is a UK-based investment bank specializing in mid-cap and growth companies, offering a diversified suite of services across investment banking, research and distribution, and execution services. This integrated model provides some resilience against market cyclicality.
• The company’s financial performance has been impacted by challenging UK capital market conditions, characterized by a downturn in IPOs and M&A activity. This has led to recent net losses and a declining revenue trend over the past three years.
• Management is focused on strategic initiatives to drive future growth, including expanding its client base, particularly within the FTSE 350, diversifying revenue streams with a greater emphasis on M&A advisory, and investing in technology to enhance efficiency and client offerings.

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• Microsoft is making a bold move into the healthcare AI space, partnering with Harvard Medical School to improve the reliability of medical advice generated by its Copilot assistant.
• The collaboration, set to be unveiled with an update to Copilot as early as this month, integrates health content from Harvard Health Publishing.
• This step reflects Microsoft’s broader ambitions to establish Copilot as a leading AI assistant not just in productivity software but in areas demanding high accuracy and trust—like healthcare.

• As Johnson & Johnson (JNJ) faces intensifying competition in the immunology landscape, recent reports indicate the healthcare behemoth is exploring the acquisition of Protagonist Therapeutics, a biotechnology firm currently collaborating with JNJ on the development of icotrokinra, a novel oral therapy targeting immune diseases like plaque psoriasis and ulcerative colitis.
• The news has driven Protagonist’s stock up nearly 30%, valuing the company at around $4.2 billion.
• JNJ already holds exclusive commercialization rights to icotrokinra, which analysts at Leerink Partners project could generate peak global sales of $9.5 billion.

• Review of the conventional arguments (Bloomberg article): the timing gap between Capex and Revenue is the real issue.
• Review of history of Tech Bubbles (Krugman): not clear if AI is a bubble, it could keep going for years, but if it bursts it will be worse than 1999-2003.
• Best AI comp is Cloud Computing. Both enable new data analytics, new applications. Both are platforms. US Cloud Computing revenues increased 25x in 10 years (2015 to 2024).

• BYD’s monthly sales volume decreased YoY for the first time in September.
• We expect the revenue growth rate will slow down to 16%, but op margin will rise in 2026.
• We believe the stock price is overvalued, whether measured by time-series or cross-sectional methods.

• NVIDIA Corp (NVDA US) is setting up an offshore headquarters in Taipei, and is currently in the process of acquiring land.
• Taiwan’s central government is currently ruled by the Democratic Progressive Party (DPP), while Taipei City is governed by a mayor from the Kuomintang (KMT), creating political complications.
• Politics often takes precedence over economics, yet in a democracy, politics is driven by competing parties—inevitably leading to conflicts of interest.

• NSE dominates market as it maintains a near-monopoly (∼90% share) in equity cash and dominates the booming derivatives segment.
• NSE’s Revenue and PAT are 5-9x larger than BSE’s, with a much higher PAT margin (68% vs. 44%).
• NSE Holds appreciating, strategic minority stakes in high-potential financial infrastructure companies which can be seen as hidden value for NSE.

• The decision to invest a large sum of money to increase Hong Kong and Mainland China banking exposure, seems oddly timed
• There is no exceptional discount to drive this decision, and there is unlikely to be any major resumption former times
• Granular data on credit metrics from HSB shows marked weakness, deterioration, and with privatization, we may only see this data one more time.

Key points (machine generated)

• IonQ, valued at $12 billion, is shifting focus from quantum hardware to software and hybrid solutions amid industry challenges.
• The company reported only $3.1 million in hardware revenue last quarter, indicating a decline, alongside $4.5 million from consulting and cloud services.
• Investor sentiment is cautious, reflected by a short interest of 14.8% and a borrow cost of 0.5%.

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.

• Kuros Biosciences is rapidly transitioning into a high-growth, profitable medical device company, driven by the commercial success of its MagnetOs bone graft portfolio.
• Compelling Level 1 clinical data for MagnetOs, demonstrating superiority over the current gold standard (autograft) in challenging spinal fusion procedures, serves as a powerful commercial driver and solidifies its competitive advantage.
• Having recently achieved its first operating profit and positive EBITDA, the company is at a financial inflection point, with a clear path to sustained profitability and cash flow generation, significantly de-risking the investment profile.

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• Singamas is a major global container manufacturer facing a cyclical industry downturn, characterized by overcapacity and pressure on container prices.
• Despite challenging market conditions, the company maintains a strong balance sheet, an asset-light model, and is diversifying into higher-margin specialized containers, such as Energy Storage Systems (ESS), and growing its leasing business to provide more stable revenue streams.
• The company offers a compelling dividend yield, supported by a stated policy of returning value to shareholders, but faces significant risks from global trade tensions, economic slowdowns, and intense competition.

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Key points (machine generated)

• FnGuide, established in 2000, is a leading provider of market data and equity indices in South Korea.
• The company operates in three segments: financial market data, equity indices, and fund ratings, with the latter having limited market share.
• FnGuide’s ‘Value-Up’ plan focuses on improving stability, profitability, and growth, positioning it alongside global competitors like Factset and S&P Global.

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.

• In this edition: • AMG Critcal Materials | sells Graphit Kropfmühl to Asbury Carbons • SBM Offshore | entering AI partnerships with SLB and Cognite • Nexperia | Dutch government has taken control • Dutch politics | has GroenLinks/PvdA peaked too soon?

• U.S. President Donald Trump announced a 100% tariff on China.
• Facing the escalation of the U.S.–China tariff war, U.S. stocks plunged on October 10 under heavy selling pressure.  
• Facing the escalation of the U.S.–China tariff war, U.S. stocks plunged on October 10 under heavy selling pressure.  

• 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 14 pair trade opportunities across four markets and six 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.

• TSMC: +19% Premium; Good Level to Close Out for Those Short the ADR Spread
• UMC: -3.9% Discount; Rare Deep Discount Good Level to Long the ADR Spread
• ASE: -5.5% Discount; Any Spread Below Parity a Good Level to Long the ADR Spread

• Mi Technovation is strategically diversifying its business to mitigate the cyclicality of the semiconductor industry, expanding from its core equipment business into semiconductor materials and solutions.
• The company is well-positioned to capitalize on long-term semiconductor industry growth, driven by secular trends such as AI, 5G, and electric vehicles, through its expanding product portfolio and global footprint.
• Financial performance shows strong top-line growth, but margin volatility and cash flow inconsistencies highlight operational risks and the capital-intensive nature of its expansion strategy.

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• Context: Friday’s sell-off occurred after the Australian market closed, but several ASX-listed companies were swept up in the decline through dual listings or U.S.-traded ADRs.
• This Insight looks at the impact on prominent S&P/ASX 200 constituents — including BHP, CSL, and major banks. While some companies showed limited movement, others, such as BHP, experienced sharper declines.
• Why Read: Understand where the Australian market might be headed when trading resumes after the weekend.

• Zengame Technology is a niche developer of online card and board games in China, demonstrating strong historical profitability and a commitment to shareholder returns through high dividend payouts.
• Recent financial performance indicates a significant slowdown, with declining revenue and contracting margins, reflecting intense competition and potential saturation in its core markets. The 3-year CAGR for net income is negative, contrasting sharply with its 5-year growth.
• The stock trades at a low valuation compared to peers, suggesting it could be a value opportunity if it can stabilize its user base and revenue. However, it also faces substantial risks from regulatory oversight in China and competition from dominant industry players.

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• AT&T is undergoing a strategic refocus on its core telecommunications business, prioritizing 5G and fiber network expansion to drive future growth.
• The company exhibits stable financial performance with recent growth in service revenues and strong free cash flow, supporting network investments and shareholder returns.
• Significant challenges remain, including a substantial debt burden and intense competition in the mature U.S. telecom market, which could pressure margins and growth targets.

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• Wingtech Technology is undergoing a significant strategic transformation, divesting its lower-margin Original Design Manufacturer (ODM) business to focus on its high-margin semiconductor operations through its subsidiary, Nexperia.
• The company is a global leader in the smartphone ODM market, but this segment has faced profitability challenges, contributing significantly to recent net losses despite accounting for the majority of revenue.
• Future growth and valuation re-rating hinge on the successful expansion of its semiconductor business, particularly in high-growth sectors like automotive, industrial, and AI, leveraging Nexperia’s strong market position in discrete semiconductors, logic, and MOSFETs.

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• Innovative Niche Player: CleanSpace is a designer and manufacturer of advanced Powered Air Purifying Respirators (PAPRs), distinguished by its patented, compact, and ergonomic all-in-one design that eliminates the need for cumbersome belt-and-hose units common among competitors.
• Financial Turnaround in Progress: The company is demonstrating a significant operational recovery, with strong revenue growth of 26% in FY25, expanding gross margins to nearly 75%, and achieving positive EBITDA and operating cash flow in the second half of FY25. It is on a trajectory to reach sustained breakeven.
• Strategic Growth Focus: Having pivoted from a pandemic-driven healthcare focus back to its core industrial market, CleanSpace is pursuing growth through geographic expansion in the US, Europe, and Asia, alongside new product launches and growing its recurring revenue from consumables, which now account for 47% of sales.

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• Context: The ANZ (ANZ AU) vs. Macquarie (MQG AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity. 
• Highlights: Long Macquarie, short ANZ targets a 6% return. Friday’s U.S. sell-off and today’s ANZ’s strategy update could drive early trading volatility in the pair.
• 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.