Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

Fenix Resources Ltd operates as a resource exploration company. The Company explores for iron ore, vanadium, and manganese. Fenix Resources develops its projects in Australia.

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<li>
<a href="https://www.smartkarma.com/entities/fenix-resources-ltd" target="_blank" data-smartkarma-citation="entities:7405:1" rel="noopener">Fenix Resources (FEX AU)</a> presented a <a href="https://wcsecure.weblink.com.au/pdf/FEX/03036040.pdf" target="_blank" rel="noopener">3-year production plan</a>, with iron ore shipments growing from 2.4 million tons in FY25 to 5.7 million tons in FY28 (midpoint guidance).  </li>
<li>The company upgraded its FY26 production guidance to 4.2-4.8 million tons (from earlier 4.1 million tons), while maintaining its cash costs in the 70-80 AUD/ton range (C1 cash costs).  </li>
<li>A feasibility study has commenced, which will take Fenix Resources (FEX AU) into the 6-10 million range from FY29—more details in a management conference call on 15th December. </li>
</ul>



Fenix Resources (FEX AU) presented a 3-year production plan, with iron ore shipments growing from 2.4 million tons in FY25 to 5.7 million tons in FY28 (midpoint guidance).  
The company upgraded its FY26 production guidance to 4.2-4.8 million tons (from earlier 4.1 million tons), while maintaining its cash costs in the 70-80 AUD/ton range (C1 cash costs).  
A feasibility study has commenced, which will take Fenix Resources (FEX AU) into the 6-10 million range from FY29—more details in a management conference call on 15th December. 


Fenix Resources (FEX AU) 3-Year Production Plan Has An Exciting Ramp And Upgrade To FY26

DigiPlus Interactive Corp. provides gaming and leisure facilities. The Company offers multi-gaming platforms, numerous products, and games with a strong distribution network of entertainment facilities in neighborhood sites. DigiPlus Interactive serves customers in the Philippines.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/digiplus-interactive-corp" target="_blank" data-smartkarma-citation="entities:23060:1" rel="noopener">DigiPlus Interactive (PLUS PM)</a> confirmed that the government is working with licensed operators to develop a legal framework to ensure responsible gaming/root out illegal gambling/player protection—final hearing this month(December). 
</li>
<li>The company purchased a convertible bond for 1.6 billion HKD (205 million USD), giving it the right to acquire 53.89% of <a href="https://www.smartkarma.com/entities/international-entertainment" target="_blank" data-smartkarma-citation="entities:16536:1" rel="noopener">International Entertainment (1009 HK)</a>, lowering its GGR share. </li>
<li>The stock trades at 7x/5.5x FY25/26PE, based on our numbers, which assume a sequential quarterly recovery (normalized by Q2FY26 levels) as guided by management. </li>
</ul>



DigiPlus Interactive (PLUS PM) confirmed that the government is working with licensed operators to develop a legal framework to ensure responsible gaming/root out illegal gambling/player protection—final hearing this month(December). 

The company purchased a convertible bond for 1.6 billion HKD (205 million USD), giving it the right to acquire 53.89% of International Entertainment (1009 HK), lowering its GGR share. 
The stock trades at 7x/5.5x FY25/26PE, based on our numbers, which assume a sequential quarterly recovery (normalized by Q2FY26 levels) as guided by management. 


DigiPlus Interactive (PLUS PM) PSE Webinar Updates + Recent Acquisition - All Positives

Indo Tambangraya Megah / Equity Bottom-Up

PT Indo Tambangraya Megah Tbk operates as a coal exploration and mining company that provides energy and electricity support. The Company operates in Indonesia and supplies coal to the world energy market.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/indo-tambangraya-megah-tbk-p" target="_blank" data-smartkarma-citation="entities:15891:1" rel="noopener">Indo Tambangraya Megah (ITMG IJ)</a> approved the buyback of 150 mn USD at its EGM on 3rd November, in addition to approving a 50 mn USD dividend payment. </li>
<li>Net cash on the balance sheet was &gt;USD 920 million at the end of 3Q 2025 (representing 58% of the market capitalization), easily enough to complete its capital allocation commitments.</li>
<li>At the cyclical low, the company will still generate free cash flow of 250 million USD in FY25, representing a free cash flow yield of 15%. </li>
</ul>



Indo Tambangraya Megah (ITMG IJ) approved the buyback of 150 mn USD at its EGM on 3rd November, in addition to approving a 50 mn USD dividend payment. 
Net cash on the balance sheet was &gt;USD 920 million at the end of 3Q 2025 (representing 58% of the market capitalization), easily enough to complete its capital allocation commitments.
At the cyclical low, the company will still generate free cash flow of 250 million USD in FY25, representing a free cash flow yield of 15%. 


Indo Tambangraya Megah (ITMG IJ): Massive ~10% Buyback Approved, Cash 58% of Market Capitalization

Perfect Medical Health / Equity Bottom-Up

Perfect Medical Health Management (previously Perfect Shape Medical Limited) offers slimming and beauty treatments. The Company provides fat softens and dissolves services, laser freckle services, and other services. Perfect Shape Medical offers services in China.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/perfect-medical-health-management" target="_blank" data-smartkarma-citation="entities:3639:1" rel="noopener">Perfect Medical Health (1830 HK)</a> announced its H1FY26 results, with the pace of revenue decline sharply decelerating to 4.5% HoH, while net profits increased 43% due to cost-cutting initiatives. </li>
<li>Signs of demand recovery haven't emerged yet and would need to be monitored as the weak base of effect of H2FY25 kicks in for H2FY26. </li>
<li>With aggressive cost-cutting initiatives, the stock trades at 9.4x FY26e and a 10.7% dividend yield. We need to monitor the sales recovery, though, as it is critical to the company. </li>
</ul>



Perfect Medical Health (1830 HK) announced its H1FY26 results, with the pace of revenue decline sharply decelerating to 4.5% HoH, while net profits increased 43% due to cost-cutting initiatives. 
Signs of demand recovery haven't emerged yet and would need to be monitored as the weak base of effect of H2FY25 kicks in for H2FY26. 
With aggressive cost-cutting initiatives, the stock trades at 9.4x FY26e and a 10.7% dividend yield. We need to monitor the sales recovery, though, as it is critical to the company. 


Perfect Medical (1830 HK): Cost-Cutting Initiatives Bearing Fruit, Demand Recovery Needs Monitoring

<ul>
<li>There were further updates on the Simandou iron ore mine, <a href="https://www.mining.com/web/iron-ore-shakeup-begins-as-simandous-first-boat-heads-for-china/" target="_blank" rel="noopener">which commenced operations</a><a href="https://www.mining.com/web/iron-ore-shakeup-begins-as-simandous-first-boat-heads-for-china/" target="_blank" rel="noopener"> </a>last week, igniting bearish sentiment and taking iron ore prices down 3% WoW to 103 USD/ton.</li>
<li>Demand, though, for higher-grade material remains strong, resulting in a widening spread between 65 and 62 Fe to almost 16 USD/ton (from 12-13 USD/ton a week ago). </li>
<li>We favor <a href="https://www.smartkarma.com/entities/fenix-resources-ltd" target="_blank" data-smartkarma-citation="entities:7405:1" rel="noopener">Fenix Resources (FEX AU)</a> for its high growth profile and potential to increase production from 1.5 million tons to around 10 million tons. </li>
</ul>


There were further updates on the Simandou iron ore mine, which commenced operations last week, igniting bearish sentiment and taking iron ore prices down 3% WoW to 103 USD/ton.
Demand, though, for higher-grade material remains strong, resulting in a widening spread between 65 and 62 Fe to almost 16 USD/ton (from 12-13 USD/ton a week ago). 
We favor Fenix Resources (FEX AU) for its high growth profile and potential to increase production from 1.5 million tons to around 10 million tons. 


Iron Ore 65-62 Spread Widens, Despite The Commencement of Simandou Shipments

A buy-side analyst with over 18 years of experience investing in Asian markets and specializing in the mid-small cap space, emphasizing value investing in companies with good free cash flows/dividends and long-term holding horizons. 
Exempt Financial Adviser (EFA) under CrossASEAN Research Pte Ltd. It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.