Indian Accounting Research Analyst, Trudence Capital Advisors

Nitin Mangal

Indian Accounting Research Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Forensic Accounting

INOX India (INOX) is a manufacturer of cryogenic equipment.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/inox-india-limited" target="_blank" data-smartkarma-citation="entities:40138:1" rel="noopener">INOX India Limited (INOX IN)</a> or IIL is into design, engineering and manufacturing of cryogenic tanks and equipment. These are used in industrial gases, LNG, green hydrogen, metallurgy industries, etc</li>
<li>The company came up with its IPO in December 2023 and has posted a decent growth in the last few years.</li>
<li>One should however remain cautious about WC trend, receivables provisioning, RPT with promoters, etc.</li>
</ul>



INOX India Limited (INOX IN) or IIL is into design, engineering and manufacturing of cryogenic tanks and equipment. These are used in industrial gases, LNG, green hydrogen, metallurgy industries, etc
The company came up with its IPO in December 2023 and has posted a decent growth in the last few years.
One should however remain cautious about WC trend, receivables provisioning, RPT with promoters, etc.


Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Bottom-Up

Xiaomi Corporation manufactures communication equipment and parts. The Company produces and sells mobile phones, smart phone software,  set-top boxes, and related accessories. Xiaomi markets its products worldwide.

<ul>
<li>Excluding the new business electrical vehicle, total revenue increased by 23% YoY in 2Q24.</li>
<li>Smartphone shipments grew faster than Samsung and Apple in 2Q24.</li>
<li>We believe electrical vehicle will bring significant gross profit in following two years.</li>
</ul>


Excluding the new business electrical vehicle, total revenue increased by 23% YoY in 2Q24.
Smartphone shipments grew faster than Samsung and Apple in 2Q24.
We believe electrical vehicle will bring significant gross profit in following two years.


Xiaomi (1810 HK): 2Q24, Revenue up by 32%, Electric Vehicle Profit to Follow, Buy

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

Oriental Watch Holdings Limited, through its subsidiaries, trades watches and invests in properties.

<ul>
<li>Hong Kong's watch and jewelry sales were weak in Q2 CY24 (-24% YoY) as dampened sentiment continues to plague overall retail sales across regional sectors. </li>
<li>However, <a href="https://www.smartkarma.com/entities/oriental-watch-holdings" target="_blank" rel="noopener">Oriental Watch (398 HK)</a>, with its Rolex and Patek Phillipe portfolio, is expected to be more resilient than the rest of the watch industry. </li>
<li>The company is still a very good dividend play, trading at 7.6x FY25 PE, with 60% of the market cap in cash and a 13.5% dividend yield. </li>
</ul>


Hong Kong's watch and jewelry sales were weak in Q2 CY24 (-24% YoY) as dampened sentiment continues to plague overall retail sales across regional sectors. 
However, Oriental Watch (398 HK), with its Rolex and Patek Phillipe portfolio, is expected to be more resilient than the rest of the watch industry. 
The company is still a very good dividend play, trading at 7.6x FY25 PE, with 60% of the market cap in cash and a 13.5% dividend yield. 


Oriental Watch (398 HK): Sluggish Sales But Deep Value And Rolex Resilience

Japan Specialist

Mark Chadwick

Mercari, Inc. operates as an electronic commercial company. The Company offers electronic commercial software, operation management, marketing planning, and other marketplace services. Mercari serves customers worldwide.

<ul>
<li>Q4 results were a mixed bag with GMV growth slowing to just 6%. However, costs came in better than expected, boosting margins</li>
<li>Management surprise the market with bullish FY6/25 guidance. Expects GMV growth to accelerate to +10% and sees OP at a healthy 22-25 billion yen</li>
<li>Activist investor Oasis has taken a stake in the company. There is an obvious restructuring angle in addition to significant upside from fintech expansion </li>
</ul>


Q4 results were a mixed bag with GMV growth slowing to just 6%. However, costs came in better than expected, boosting margins
Management surprise the market with bullish FY6/25 guidance. Expects GMV growth to accelerate to +10% and sees OP at a healthy 22-25 billion yen
Activist investor Oasis has taken a stake in the company. There is an obvious restructuring angle in addition to significant upside from fintech expansion 


Kuaishou Technology operates as a content community and social platform. The Company helps users create, upload and watch short videos on mobile devices. Kuaishou Technology offers services worldwide.

<ul>
<li>The gross margin improved 5 pp (percentage points) YoY and the operating margin improved 7 pp YoY in 2Q24.</li>
<li>In 2Q24, total revenue grew by 12% YoY, with the main business up by 22% YoY.</li>
<li>Three cross-sectional comparisons reach similar stock upsides about 100%. Buy.</li>
</ul>


The gross margin improved 5 pp (percentage points) YoY and the operating margin improved 7 pp YoY in 2Q24.
In 2Q24, total revenue grew by 12% YoY, with the main business up by 22% YoY.
Three cross-sectional comparisons reach similar stock upsides about 100%. Buy.


KS / Kuaishou (1024 HK): 2Q24, Significant Margin Improvement and 100% Stock Upside