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Smartkarma Daily Briefs

May 02
0

Daily Brief Industrials: Hainan Meilan International Airport, Aeorema Communications, Meiwa Corp, Rasa Corporation and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Hainan Meilan Intl Airport (357 HK): Hainan SASAC’s Left/Right Pocket MGO
  • Meilan Airport (357 HK): Possible Unconditional MGO at HK$10.62
  • Hainan Meilan Intl Airport (357 HK): Possible Mandatory General Offer
  • Hybridan Small Cap Feast: 23/04/2025
  • Meiwa Corp (8103 JP): Full-year FY03/25 flash update
  • Rasa Corporation (3023 JP): Coverage Initiation

Hainan Meilan Intl Airport (357 HK): Hainan SASAC’s Left/Right Pocket MGO

By David Blennerhassett

  • Hainan Meilan International Airport (357 HK) has announced a potential change of control, via the domestic shares. 
  • Haikou Meilan’s major shareholder, Hainan Airport Industrial, has entered into a SPA with Hainan Island (600515 CH) to sell its 50.19% stake, the completion of which triggers an unconditional MGO.
  • The H-share Offer price will be HK$10.62/share. That’s not compelling;  but it’s not meant to be as Hainan Airport Industrial and Hainan Island Construction are ultimately controlled by Hainan SASAC. 

Meilan Airport (357 HK): Possible Unconditional MGO at HK$10.62

By Arun George

  • Haikou Meilan International Airport Company entered an SPA with Hainan Island Construction (600515 CH) to sell its Hainan Meilan International Airport (357 HK) 50.19% stake at RMB9.85 per share (HK$10.62).
  • The SPA completion requires several regulatory approvals, which are low-risk, particularly as Hainan SASAC is the largest shareholder of the offeror and the seller.
  • Under Rule 26.1 of the Takeovers Code, upon completion, the offeror will be required to make an unconditional mandatory cash offer at HK$10.62 per share. The MGO price is final.  

Hainan Meilan Intl Airport (357 HK): Possible Mandatory General Offer

By Osbert Tang, CFA

  • The change in controlling shareholder at Hainan Meilan International Airport (357 HK) will trigger a general offer. At HK$10.62, we do not see the proposed offer price attractive.
  • The proposed price is only at 10.6% premium to the latest closing price, and equals to 1.15x 12-month forward P/B, way lower than the 5-year peak of 5.1x.
  • The new parent Hainan Airport Infrastructure (600515 CH) can generate synergy, and the turn of Hainan into a Free Trade Port will attract visitors, boosting the long-term outlook. 

Hybridan Small Cap Feast: 23/04/2025

By Hybridan

  • The strategic communications group with offices in London, New York, and Cannes reports a renewed contract with Stagwell (NASDAQ: STGW).
  • It is to produce SPORT BEACH at the Cannes Lions International Festival of Creativity in June 2025.
  • The event includes a reimagined structural design, expanded capacity, new interactive elements and new brand partners, and global athletes.

Meiwa Corp (8103 JP): Full-year FY03/25 flash update

By Shared Research

  • FY03/25 revenue was JPY156.7bn (-1.0% YoY), with operating profit JPY3.6bn (+20.1% YoY) and net income JPY3.4bn (+22.6% YoY).
  • FY03/26 forecast: revenue JPY160.0bn (+2.1% YoY), operating profit JPY3.2bn (-10.3% YoY), net income JPY3.0bn (-11.1% YoY).
  • Meiwa plans a JPY38.00 per share dividend for FY03/26, down from JPY42.00 in FY03/25.

Rasa Corporation (3023 JP): Coverage Initiation

By Shared Research

  • In FY03/24, Rasa reported revenue of JPY27.9bn (-5.9% YoY), operating profit of JPY2.5bn (-12.5% YoY), recurring profit of JPY2.8bn (-5.6% YoY), and net income attributable to owners of the parent of JPY2.0bn (-5.5% YoY).
  • Despite higher profit in the Industrial and Construction Machinery business, overall operating profit declined YoY due to lower profit in the Resources and Metallic Materials and Plant and Equipment Engineering businesses.
  • In FY03/25, the company forecasts revenue of JPY27.7bn (-0.8% YoY), operating profit of JPY2.3bn (-7.9% YoY), recurring profit of JPY2.5bn (-11.2% YoY), and net income attributable to owners of the parent of JPY1.9bn (-4.9% YoY).

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May 02
0

Daily Brief Consumer: Toyota Industries, Sony Corp, Shinsegae, Kayou, Ebay Inc, Luckin Coffee, Ginebra San Miguel , TVS Motor , Nihon Chouzai and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Toyota Industries (6201) – Thinking About How To Value a ¥6trln Bid
  • SONY (6758) | Going into Earnings
  • Lee Myung-Hee Transfers All of Her 10.2% Stake In Shinsegae to Her Daughter Chung Yoo-Kyung
  • Kayou IPO Preview: 250%+ Growth + FCF of $500M+ in 2024, Leader in the Trading Card Sector in China
  • Ebay’s Qoo10 Surges on K-Style Boom
  • [Luckin (LKNCY US, BUY, TP US$39) TP Change]: Coffee Bean Price Hike Hurts Margin but Boosts Sales
  • Ginebra San Miguel (GSMI PM) Q1 2025: Steady Pricing Led Growth
  • TVS Motor Q4FY25 Review: Premium Valuation Backed by Strategic Execution or Investor Over-Optimism?
  • Nihon Chouzai (3341 JP): Full-year FY03/25 flash update

Toyota Industries (6201) – Thinking About How To Value a ¥6trln Bid

By Travis Lundy

  • Toyota Industries is a relatively complicated business. It owns lots of shares of Toyota and other companies. It has a financing business, and runs ¥500+bn of EBITDA.
  • As of 31 March 2025, the “Enterprise Value” of the Operating and Financing Business together was about ¥2.2trln. The “Asset Ownership Business” was at ¥2.8trln (1yr ago it was ¥4trln).
  • If you think buying the Operating Business at 6x EBITDA is appropriate, that means the Asset Ownership Business block buy gets done at 31-March-2025 prices. Worth thinking about.

SONY (6758) | Going into Earnings

By Mark Chadwick

  • Content-Driven growth: Strong performance in music and gaming supports Sony’s shift toward high-margin content, insulating it from trade and macro headwinds.
  • Upcoming catalysts: Spin-off of Sony Financial and potential restructuring could unlock value and address the long-standing conglomerate discount.
  • Attractive valuation: Trading at 14x EV/EBIT with defensive sector exposure, Sony remains undervalued relative to global peers despite YTD outperformance.

Lee Myung-Hee Transfers All of Her 10.2% Stake In Shinsegae to Her Daughter Chung Yoo-Kyung

By Douglas Kim

  • On 30 April, Lee Myung-Hee (Chairwoman of Shinsegae Group) decided to transfer all of her 10.2% stake in Shinsegae (004170 KS) as a gift to her daughter Chung Yoo-Kyung. 
  • After this gift, Chung Yoo-Kyung’s ownership in Shinsegae will rise from 18.95% to 29.16%.
  • We are positive on this share transfer of 10.2% stake in Shinsegae from mother (Lee Myung-Hee) to her daughter Chung Yoo-Kyung on the share price impact on Shinsegae.

Kayou IPO Preview: 250%+ Growth + FCF of $500M+ in 2024, Leader in the Trading Card Sector in China

By Andrei Zakharov

  • Kayou Inc., early-mover in the trading card industry in China, filed for an IPO in Hong Kong. The company sells trading cards, toys, figures, badges, pens, and notebooks, among others.
  • Kayou Inc. received capital of ~$135M from HongShan Capital and Tencent Holdings in 2022. Mr. Li Qibin founded trading card and collectible toy firm in 2011.
  • Founder led company has delivered 250%+ growth and FCF of $500M+ in 2024. The market opportunity is large enough to support sustained high growth for Kayou for several years.

Ebay’s Qoo10 Surges on K-Style Boom

By Michael Causton

  • Qoo10 is tiny in comparison to Amazon, Rakuten and Yahoo but it punches well above its weight by specialisation. 
  • The online mall’s focus on Korean cosmetics and lifestyle has given it a depth of loyalty among young women that was once the preserve of Zozo.
  • Along with its other platform Move, Ebay Japan has built a solid presence in the Japanese market which looks set to continue to expand.

[Luckin (LKNCY US, BUY, TP US$39) TP Change]: Coffee Bean Price Hike Hurts Margin but Boosts Sales

By Eric Wen

  • Luckin reported C1Q25 revenue in-line/6% vs. our estimate/consensus, and non-GAAP operating profit 9%/75% higher than our estimate/consensus, thanks to warmer weather and constrained marketing spending;
  • Despite Luckin pre-emptive lock-ins, rising coffee bean price shall still take its toll as Luckin’s biggest rival Starbucks should be equally capable of managing the commodity price risk. 
  • We keep Luckin as BUY rating but cut TP to US$39.

Ginebra San Miguel (GSMI PM) Q1 2025: Steady Pricing Led Growth

By Sameer Taneja

  • Ginebra San Miguel (GSMI PM) reported steady growth in Q1 2025, with revenues and profits increasing by 7.6% and 10.8% YoY.  Volume/Pricing grew 1%/6.6% YoY as company offset excise-duty increases.
  • EBITDA margins were maintained at 16.2%, while the company saw a massive increase in cash and investments to 16.2 bn pesos from 12.8 bn pesos, led by working capital inflows. 
  • Trading at 10x PE with 20% of the market cap in cash and investments, and demonstrating pricing power/profit growth of 10-15% CAGR, this is a name to explore. 

TVS Motor Q4FY25 Review: Premium Valuation Backed by Strategic Execution or Investor Over-Optimism?

By Sreemant Dudhoria

  • Robust Operating Performance:TVS Motor (TVSL IN) reported 17% YoY revenue growth in Q4FY25 with EBITDA margins at 12.5% (ex-PLI) — stable despite input cost pressures. 
  • EV Momentum & Premium Product Strength: EV sales rose 54% YoY, and TVS continued to gain traction in the premium segment through its Apache and Ntorq models.
  • Valuation Demands Flawless Execution:At 58x P/E TTM EPS,TVS commands a steep premium over peers.Justifying this requires sustained outperformance in EV adoption, export monetization, and premium product cycles without margin erosion.

Nihon Chouzai (3341 JP): Full-year FY03/25 flash update

By Shared Research

  • Sales increased by 5.9% YoY to JPY360.5bn, but operating profit decreased by 31.8% YoY to JPY6.2bn.
  • Pharmaceutical Manufacturing faced a JPY630mn operating loss due to NHI drug price revisions and manufacturing deficiencies.
  • FY03/26 forecasts sales of JPY372.8bn (+3.4% YoY) and net income of JPY3.5bn (+151.6% YoY).

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May 02
0

Daily Brief Health Care: Celltrion Inc, Fujian Lemo IoT Technology, Suzhou Ribo Life Science and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (March and April 2025)
  • Pre-IPO Fujian Lemo IoT Technology – The Outlook for Growth and Profit Margins Is Not Optimistic
  • Suzhou Ribo Life Science (瑞博生物) Pre-IPO Quick View: Scarcity of SiRNA Player

Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (March and April 2025)

By Douglas Kim

  • In this insight, we discuss the alpha generation through companies that announced share buybacks in the Korean stock market in March and April 2025.
  • There were 40 companies in the Korean stock market that announced share buybacks in the past two months. On average, the share buyback announcements represented 1.7% of outstanding shares.
  • Astute traders should put alert signals on share buyback announcements in Korea with more than 3% outstanding shares. 

Pre-IPO Fujian Lemo IoT Technology – The Outlook for Growth and Profit Margins Is Not Optimistic

By Xinyao (Criss) Wang

  • Lemo increased the number of massage equipment in the cinemas significantly, but the transaction value has reflected its ineffective business expansion. The Company may have already encountered a growth ceiling.
  • Lemo’s business model requires high occupancy fee and maintenance costs, which is hard to decrease. However, if revenue growth slows down, Lemo’s profits would be “eroded” due to high costs.
  • In Sep. 2024, valuation of Lemo reached RMB750 million. We think valuation of Lemo could be lower than that of peers in the future due to concerns on the outlook. 

Suzhou Ribo Life Science (瑞博生物) Pre-IPO Quick View: Scarcity of SiRNA Player

By Ke Yan, CFA, FRM

  • Suzhou Ribo Life is looking to raise at least US$100 million via a Hong Kong listing. CICC and Citi are the deal sponsors.
  • Ribo Life is a world leading company in the area of siRNA research.
  • The company’s RBD4059 is potentially the first in class siRNA drug for thrombotic diseases.

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May 02
0

Daily Brief Financials: Banco De Sabadell SA, Strike, Hokkoku Financial Holdings, Japan Investment Adviser Co, SES AI Corp and more

By | Daily Briefs, Financials

In today’s briefing:

  • BBVA’s Hostile Offer for Sabadell Moves into Final Phase: The Catalan Conundrum
  • Strike (6196 JP): 1H FY09/25 flash update
  • Hokkoku Financial Holdings (7381 JP): Full-year FY03/25 flash update
  • Japan Investment Adviser Co (7172 JP): Q1 FY12/25 flash update
  • SES AI Corp. – MU-0 Shows the Future for SES AI Across Multiple Battery Markets

BBVA’s Hostile Offer for Sabadell Moves into Final Phase: The Catalan Conundrum

By Jesus Rodriguez Aguilar

  • CNMC approved BBVA’s bid with mild SME lending and branch access commitments. The offer now enters Phase 3, with government review and CNMV filing expected by late Q2 2025.
  • Sabadell shares trade 6.7% above the offer value, suggesting market expectation of an improved bid or deal failure. The gross spread is negative despite regulatory momentum.
  • BBVA’s CET1 would drop to 11.99% under current terms. It can raise the cash offer by €0.12–0.17/share and still stay above 11.5%, allowing room to improve the deal.

Strike (6196 JP): 1H FY09/25 flash update

By Shared Research

  • Revenue for FY09/25 was JPY9.0bn, a 3.0% YoY decline, with operating profit at JPY2.4bn, down 34.2%.
  • Cost of revenue increased 14.2% YoY to JPY3.7bn, driven by higher personnel and referral fees.
  • Dividend payout ratio target increased to 50%, with annual dividend forecast raised to JPY180.0 per share.

Hokkoku Financial Holdings (7381 JP): Full-year FY03/25 flash update

By Shared Research

  • Consolidated ordinary income decreased by 1.4% YoY to JPY89.6bn, while gross profit increased by 39.3% YoY.
  • Hokkoku Bank’s core operating profit rose 87.8% YoY, driven by increased net interest income and operating income.
  • For FY03/26, the company forecasts a 46.4% YoY increase in consolidated ordinary profit to JPY18.0bn.

Japan Investment Adviser Co (7172 JP): Q1 FY12/25 flash update

By Shared Research

  • Q1 revenue increased 22.3% YoY, driven by a 19.5% rise in Operating Lease business revenue, reaching JPY11.0bn.
  • Operating profit margin rose 9.9pp to 63.3% in Q1, despite foreign exchange losses of JPY448mn.
  • Total value of operating lease deals arranged in Q1 was JPY79.3bn, with significant growth in vessel arrangements.

SES AI Corp. – MU-0 Shows the Future for SES AI Across Multiple Battery Markets

By Water Tower Research

  • SES AI, a leader in AI-powered battery research, released the first version of Molecular Universe MU- 0 on April 29.
  • The live demo explained MU-0’s features and pricing structures. Molecular Universe is for mass- produced material discovery and development services, SES AI’s largest and most profitable revenue component.
  • The company expects the platform to deliver commercially practical winning solutions that help users compete.

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May 01
0

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Wall Street Ends Volatile April Higher on Tech Boost and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Ohayo Japan | Wall Street Ends Volatile April Higher on Tech Boost
  • #138 India Insight: HZL Eyes Potash, Reliance Quick Commerce Grows, Whirlpool Stake Sale
  • Japan Morning Connection: US Markets Go Risk-On Shrugging off Earlier SMCI Weakness
  • HSBC – BoCom Losses Not Yet Realized, Credit Metrics in HK and UK Are Worsening
  • Thematic Report: India Home-Services Market- Digital Disruption in ₹5 Trn TAM Market

Ohayo Japan | Wall Street Ends Volatile April Higher on Tech Boost

By Mark Chadwick

  • U.S. stocks rebounded Wednesday to close a volatile April, with the S&P 500 rising 0.15% and the Nasdaq finishing near flat after steep early losses
  • Microsoft beat earnings on strong cloud demand, and Meta delivered strong results with solid guidance despite advertising headwinds.
  • Tokyo Electron forecasts a 4% net profit rise to 566 billion yen for FY2026, driven by strong AI semiconductor equipment demand, with sales up 7% to 2,600 billion yen.

#138 India Insight: HZL Eyes Potash, Reliance Quick Commerce Grows, Whirlpool Stake Sale

By Sudarshan Bhandari

  • Hindustan Zinc (HZ IN) , part of Vedanta group, plans to enter potash mining in Rajasthan, exploring lithium potential.
  • Reliance Retail scales up quick commerce with 2.4x growth, plans dark stores to enhance delivery coverage and speed.
  • Whirlpool Corp (WHR US) plans to sell 31% stake in India unit, attracting interest from private equity giants like Advent and Bain.

Japan Morning Connection: US Markets Go Risk-On Shrugging off Earlier SMCI Weakness

By Andrew Jackson

  • SOX rallied +4% off its lows with a host of positive earnings including Qorvo, Western Digital and Seagate.
  • Bigger than expected capex plans for Meta positive for Japan SPE to start.
  • Tokyo Electron numbers yesterday were inline but show less reliance on China sales.

HSBC – BoCom Losses Not Yet Realized, Credit Metrics in HK and UK Are Worsening

By Daniel Tabbush

  • What matters with HSBC results is really not the bottom line, the management view or the constant currency comparatives, but rather the view on specific regions.
  • Still there is concern HSBC has not yet realized losses on BoCom, it is not marked to market; there will be an impairment of USD1.2-1.6bn from dilution
  • HK shows credit costs rising from USD233m to USD320m YoY in 1Q25 and UK shows credit costs rising from USD55m to USD169m YoY, both are key to HSBC

Thematic Report: India Home-Services Market- Digital Disruption in ₹5 Trn TAM Market

By Nimish Maheshwari

  • India’s home-services spend touched INR 4.99–5.07 trn in CY 2024 and is set to reach INR 8.22–8.35 trn by CY 2029 (10-11 % CAGR).
  • Online full-stack GMV is only INR 40–42 bn (0.8 % of spend) today yet grows 20-22 % CAGR to INR 105-110 bn by CY 2029.
  • Formalisation, gig-supply depth and tech-led standardisation give platforms head-room to triple GMV and double margins within five years while still capturing <2 % of TAM.

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May 01
0

Daily Brief ESG: A Guide May Be Offered to Disclose MTPs that Focus More on Strategy Rather than Matching Numbers and more

By | Daily Briefs, ESG

In today’s briefing:

  • A Guide May Be Offered to Disclose MTPs that Focus More on Strategy Rather than Matching Numbers

A Guide May Be Offered to Disclose MTPs that Focus More on Strategy Rather than Matching Numbers

By Aki Matsumoto

  • It’s progress that more companies are including ROE and ROIC as KPIs in mid-term management plans. On the other hand, it’s true that many disclosures are misaligned with investors’ perspectives.
  • As a result of not taking action on problem businesses, it’s often the case that deteriorating environment increases losses of the business, leading to revision of the “medium-term management plan.”
  • Investors are more likely to portray corporate value if a company provides measures for problem solving and growth, and reliable execution, rather than goals that are uncertain to be achieved.

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May 01
0

Daily Brief ECM: DN Solutions IPO Officially Withdrawn: Background and Key Takeaways and more

By | Daily Briefs, ECM

In today’s briefing:

  • DN Solutions IPO Officially Withdrawn: Background and Key Takeaways
  • DN Solutions Cancels IPO
  • Hanwha Aero Capital Raise: Latest Timeline, Pricing Details, and Key Trading Factors
  • Prestige Hospitality Ventures Ltd Pre-IPO Tearsheet
  • Hanwha Aerospace Rights Offering – Third Time Is a Charm?
  • Green Tea Group Pre-IPO – PHIP Updates – Still Being Driven Purely by Store Expansion
  • Chery Auto Pre-IPO – The Positives – Very Strong Earnings Growth

DN Solutions IPO Officially Withdrawn: Background and Key Takeaways

By Sanghyun Park

  • Book built weak, even under ₩65,000. Both local and foreign demand was super soft. Company floated printing at the bottom, but floor didn’t hold. Now, the deal is officially dead.
  • The real overhang was valuation; the IPO priced too high for the growth story. Without a strong momentum trade, DN Solutions couldn’t ride the wave, and sentiment soured fast.
  • They’re not waiting too long — likely aiming for a H2 comeback. KRX might skip the full review, and they may focus on domestic investors this time without an OC.

DN Solutions Cancels IPO

By Douglas Kim

  • DN Solutions cancelled its IPO today due to low demand. There were not enough institutional investors willing to put their hard earned capital into this IPO. 
  • The IPO price range was between 65,000 won and 89,700 won with market cap ranging from 4.1 trillion won to 5.7 trillion won.
  • The cancellation of the IPO for DN Solutions is also likely to have a negative impact on DN Automotive which is up 23% in the past one year. 

Hanwha Aero Capital Raise: Latest Timeline, Pricing Details, and Key Trading Factors

By Sanghyun Park

  • The first pricing is May 20, ex-rights on May 22, and rights trading runs June 16-20. Final pricing is June 26, with subscription July 1, and shares trade July 21.
  • The FSS is unlikely to make this a political issue, especially with Hanwha’s detailed amended filing. The rights offering should go ahead, so we’re prepping for that in trading.
  • It’s similar to SDI, focusing on stock rights to lower entry cost. The offering size dropped 30%, but defense sector volatility and intense short action could still cause price swings.

Prestige Hospitality Ventures Ltd Pre-IPO Tearsheet

By Rosita Fernandes

  • Prestige Hospitality Ventures Ltd (1831338D IN) (PHVL) is looking to raise around US$317m in its upcoming India IPO. The bookrunners for the deal are JM Fin, CLSA, JPM, Kotak.
  • PHVL is part of the Prestige Group. It is a hospitality asset owner and developer focused on luxury, upper upscale, and upper midscale properties in India.
  • As of Dec 24, PHVL’s portfolio includes seven operating hospitality assets with a total of 1,445 keys, including one property under renovation with 190 keys.

Hanwha Aerospace Rights Offering – Third Time Is a Charm?

By Douglas Kim

  • Hanwha Aerospace (012450 KS) has once again provided a revised rights offering prospectus following another request from the Financial Supervisory Service (FSS).
  • Rights offering amount remains the same at 2.3 trillion won. Expected rights offering price is 539,000 won which is subject to change. New shares listing date is 21 July 2025.
  • Hanwha Aerospace reported sales of 5.5 trillion won (14.3% better than consensus) and operating profit of 560.8 billion won (11.7% better than consensus) in 1Q 2025. 

Green Tea Group Pre-IPO – PHIP Updates – Still Being Driven Purely by Store Expansion

By Troy Wong

  • Green Tea Group (GTG) is looking to raise up to US$200m in its upcoming Hong Kong IPO. The deal will be run by Citi and CMBI.
  • GTG is a leading Casual Chinese restaurant chain operator in Mainland China, its revenue growth has been driven mainly via rapid store expansion.
  • Persistently negative SSSG post-COVID could signal potential cannibalization or a negative impact from a shift in consumer spending behavior.

Chery Auto Pre-IPO – The Positives – Very Strong Earnings Growth

By Sumeet Singh

  • Chery Automobile is looking to raise about US$1bn in its upcoming Hong Kong IPO. 
  • Chery Auto is a Chinese passenger vehicle company which designs, develops, manufactures and sells passenger vehicles, including internal combustion engine vehicles and new energy vehicles, both domestically and overseas.
  • In this note, we look at the company’s past performance.

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May 01
0

Daily Brief Equity Bottom-Up: Gensol Engineering Scandal: Our AI System Saw This Coming and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Gensol Engineering Scandal: Our AI System Saw This Coming
  • Anicom (8715 JP)
  • Seasonal Play: FDC Ltd- Electral’s Summer Surge and Expanding into Growing Categories
  • SDA: SunCar reports 2024 financial and operating results which showed strong revenue and adjusted EBITDA growth. The company continues to secure multiple business agreements and partnerships.
  • WRKR Ltd – Building the platform for strong revenue growth
  • Mediatek 1Q25 6% Beat, Growth Accelerating in 2Q, Large Revenue Opportunity for Data Center ASIC
  • Adani Energy Solutions Ltd. Q4 FY25 Update: Robust Growth Driven by T&D Expansion
  • MediaTek 1Q25 Earnings: AI Momentum Drives Strength, But 2H Visibility Remains Murky Due to Tariffs
  • Sumitomo Pharma (4506 JP): Guidance Revised Upward for FY25 Driven by North America
  • Adi Sarana Armada (ASSA IJ) – Indonesia’s Leading Logistics and Mobility Ecosystem

Gensol Engineering Scandal: Our AI System Saw This Coming

By Mark Jolley

  • Indian regulator barred Gensol Engineering’s founders for alleged fund diversion, causing a 90% stock plunge
  • Unusual growth and poor governance were flagged in Gensol’s accounts by Transparently’s AI system
  • Transparently’s “F” risk rating would have likely steered investors away from Gensol.

Anicom (8715 JP)

By Michael Fritzell

  • Japanese pet insurance company with 40-50% market share thanks to its OTC settlement system and a network of pet shop/veterinary clinic partners
  • The stock trades at around 13x current-year earnings, a modest multiple given the secular growth that’s ahead of it. The pet/human population ratio is low. Pet insurance is still unusual.
  • Well-Regarded investor Hikari Tsushin just took a 5.2% position in the company, highlighting the value in the company at the current 1.5x book. 

Seasonal Play: FDC Ltd- Electral’s Summer Surge and Expanding into Growing Categories

By Sudarshan Bhandari

  • FDC Limited is a pioneer in India’s pharmaceutical landscape, especially in Oral Rehydration Salts (ORS) and specialized formulations.
  • The company’s flagship brand, Electral, continues to be a major revenue contributor, despite margin pressures from regulatory price caps.
  • FDC’s strategic capex in ophthalmic, ear, and nasal drops business, coupled with its domestic and international presence, positions it strongly for sustained growth.

SDA: SunCar reports 2024 financial and operating results which showed strong revenue and adjusted EBITDA growth. The company continues to secure multiple business agreements and partnerships.

By Zacks Small Cap Research

  • SunCar Technology Group ((NASDAQ: SDA) is a leading Chinese cloud-based provider of digital enterprise auto services and auto eInsurance services in China.
  • The company offers one-stop, fully digital, on-demand automotive service systems to help enterprise clients build up their customer base and serve their end customers (auto owners).
  • The company has grown revenues rapidly in recent years, which we expect to continue in the near-to-midterm.

WRKR Ltd – Building the platform for strong revenue growth

By Research as a Service (RaaS)

  • Wrkr Ltd (ASX:WRK) offers compliance solutions for Australian superannuation contributions and payroll including member onboarding, super payments, messaging and employee validation.
  • WRK’s Q3 FY25 activities report demonstrates a continued balance of cost management (up just 3% against Q3 FY24) against lumpy cash receipts (down 6% against Q3 FY24 but up 39% on Q2 FY25) amidst continued milestone/project work, which should drive revenue in FY26.
  • This quarter saw the receipt of a $328k R&D tax credit but also a record capitalised IP spend of $985k as new product development and systems integration continues.

Mediatek 1Q25 6% Beat, Growth Accelerating in 2Q, Large Revenue Opportunity for Data Center ASIC

By Nicolas Baratte

  • Mediatek beats in 1Q, good guidance for 2Q, but close to Consensus. Several positives in 2025: flagship smartphone gains, smartphone AI upgrades, strong WiFi and Connectivity growth, progress in Auto.
  • How large is the “sizable revenue” opportunity of data center custom ASICs from 2026? Management sounds increasingly positive / confident. The stock valuations reflect this.
  • The stock trades at 18.5x 2025 EPS, 15.5x 2026 EPS, not extravagant but on the high-end. If you have the stock, keep it. If you don’t, TSMC looks more interesting.  

Adani Energy Solutions Ltd. Q4 FY25 Update: Robust Growth Driven by T&D Expansion

By Sudarshan Bhandari

  • Adani Energy Solutions (ADANIT IN)’s Q4 FY25 PAT jumped 87% YoY to INR 714 crore, driven by strong transmission execution and distribution growth.
  • The company’s record order book of INR 59,936 crore and aggressive smart metering ramp-up signal sustained growth ahead.
  • AESL is strengthening its position across transmission, distribution, and metering, reinforcing its multi-year growth visibility.

MediaTek 1Q25 Earnings: AI Momentum Drives Strength, But 2H Visibility Remains Murky Due to Tariffs

By Vincent Fernando, CFA

  • MediaTek beat 1Q25 EPS expectations as Smart Edge and mobile segments delivered strong sequential growth; flagship SoC traction supports improved ASP mix.
  • AI remains central to strategy: NVIDIA partnership progressing — NT$1bn AI ASIC revenue targeted for 2026.
  • Tariff-Driven macro caution clouds 2H outlook, but we maintain Structural Long view — AI, auto, and premium mobile SoCs drive long-term opportunity.

Sumitomo Pharma (4506 JP): Guidance Revised Upward for FY25 Driven by North America

By Tina Banerjee

  • Sumitomo Pharma (4506 JP) revised revenue guidance for FY25 to ¥399B from previous ¥381B. New guidance represents 27% YoY growth.
  • This comes on the back of higher than expected sales in North American segment, which contributed 61% sales in 9MFY25.
  • Operating profit guidance have been revised to ¥43.2B from ¥30B on controlled cost and higher sales.

Adi Sarana Armada (ASSA IJ) – Indonesia’s Leading Logistics and Mobility Ecosystem

By Angus Mackintosh

  • Adi Sarana Armada has seen its end-to-end logistics ecosystem under Cargoshare take over as its biggest revenue driver, with car rentals, vehicle auction, and used cars also showing solid growth.  
  • All divisions booked revenue growth, with the auction business seeing the strongest performance, but the logistics saw the biggest turnaround, booking a profit in FY2024 versus a loss in FY2023. 
  • Cargoshare is increasingly deploying solutions-based logistics, especially for FMCG companies, which are increasingly outsourcing logistics. ASSA’s mobility ecosystem continues to thrive through synergies, with captive car supply from ASSA Rent. 

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May 01
0

Daily Brief Credit: Lucror Analytics – Morning Views Asia and more

By | Credit, Daily Briefs

In today’s briefing:

  • Lucror Analytics – Morning Views Asia

Lucror Analytics – Morning Views Asia

By Tanvi Arora

  • In today’s Morning Views publication we comment on developments of the following high yield issuers: Adani Green Energy, Meituan
  • US equity rose for the sixth consecutive day, the best streak since March 2022, as it continued to look past weak consumer confidence and labour data as well as no signs of an easing in the tariff situation .
  • The S&P 500 was up by 0.6%, and the Nasdaq by 0.5%. US Treasury yields shrank 3-5 bps across the curve. The biggest move was probably a 6.7% correction in steel prices (HRC), following a YTD spike.

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May 01
0

Daily Brief Event-Driven: Aisin (7259) – Executing the Capital Policy Side of Its MTMP – Big ¥120bn (8.8%) Buyback and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Aisin (7259) – Executing the Capital Policy Side of Its MTMP – Big ¥120bn (8.8%) Buyback
  • Soundwill Holdings (878 HK): Wide Spread Ahead of the 23 May Scheme Vote
  • (Mostly) Asia M&A, Apr 2025 Wrap: Toyota, Abacus Storage, Bright Smart, Fujitsu General, Topcon
  • Prime Delivery: Amazon’s Route to Outbid DoorDash for Deliveroo
  • Woongjin Is Buying Preed Life (Largest Funeral Service Company in Korea) Using LBO

Aisin (7259) – Executing the Capital Policy Side of Its MTMP – Big ¥120bn (8.8%) Buyback

By Travis Lundy

  • Last Friday during market hours, Toyota Group member Aisin (7259 JP) announced earnings, guidance, its MTMP progress update, and a buyback. 
  • Earnings were OK, all things considered. Guidance was disappointing, but tariff impact is real. The buyback headlines are huge (17%); reality is about half that given the stock price.
  • If they execute via TN-3 near-term, it just sets up the next one, but they may do 2/3 TN=3 and 1/3 market. There may be Toyota Industries factors involved.

Soundwill Holdings (878 HK): Wide Spread Ahead of the 23 May Scheme Vote

By Arun George

  • Soundwill Holdings (878 HK)’s IFA opines that the Foo family’s HK$8.50 offer is fair and reasonable. The vote is on 23 May. 
  • Key conditions include approval by at least 75% of independent shareholders (<10% of independent shareholders’ rejection) and a headcount test. No shareholder holds a blocking stake. 
  • The offer is attractive compared to historical trading ranges. The vote risk is low. At the current price and for a June 11 payment, the gross/annualised spread is 4.3%/44.0%. 

(Mostly) Asia M&A, Apr 2025 Wrap: Toyota, Abacus Storage, Bright Smart, Fujitsu General, Topcon

By David Blennerhassett

  • For April 2025, 9 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$6bn. Not including Toyota Industries (6201 JP)‘s potential Offer.
  • The average premium for the new transactions announced (or first discussed) in April was ~46%, with a year-to-date average of 53%.
  • The average premiums for transactions in 2024 (129 transactions), (2023 (117), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) were 43%, 39%, 41%, 33%, 31%, and 31%.

Prime Delivery: Amazon’s Route to Outbid DoorDash for Deliveroo

By Jesus Rodriguez Aguilar

  • Amazon is positioned to outbid DoorDash with a 200–222p/share offer, implying a valuation based on 12.8–14.0x EV/NTM EBITDA, aligning with trade buyer precedent multiples.
  • While Amazon’s strategic fit is stronger, regulatory scrutiny from the UK CMA presents material timing and execution risks, likely pushing deal closure into Q1–Q2 2026.
  • Deliveroo shareholders face a trade-off: faster liquidity at 180p via DoorDash, or 10–23% upside with Amazon at the cost of longer timelines and political uncertainty. Long ROO LN.

Woongjin Is Buying Preed Life (Largest Funeral Service Company in Korea) Using LBO

By Douglas Kim

  • Woongjin Co Ltd (016880 KS) (through its subsidiary WJ Life Holdings) is buying the controlling interest in Preed Life (largest funeral service company in Korea) using LBO (leveraged buyout).
  • Preed Life is the number one player in the funeral service provider industry in Korea. It has excellent financials and it has done an excellent job of consolidating this industry.
  • All in all, we like this acquisition of Preed Life by Woongjin using LBO. Preed Life has stable cash flow generation and strong growth in sales and profits.

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