Equity Bottom-Up

• Chagee is the No. 6 largest teahouse chain in China according to store number.
• Very few teahouses have a per customer transaction higher than Chagee.
• We believe Chagee has advantages in the high price market.

• In this insight, we discuss a pair trade between Korean Air Lines (003490 KS) (go long) and Hanjin KAL Corp (180640 KS) (go short). 
• In the past three months as well as 12 months, there has been a sharp increase in the gap of Korean Air Lines and Hanjin KAL Corp. 
• It is uncertain how much longer Hoban Group will maintain its stake in Hanjin Kal. Hoban could reduce its stake in Hanjin Kal but increase its stake in LS Corp. 

• Management has lowered its volume and margin guidance over the last few quarters even as they have gradually lowered their export share to less than 10%.
• Despite a 40% drop from its high over the last few months JDSL trades at premium to its historic valuations. Significant investments in Indonesia to raise capacity is positive
• A 20-25% increase in volumes (through Indonesia investments) over the next 2-3 years coupled with 20% ROIC and Debt <1X EBITDA implies that premium valuations could sustain.

• ABLBio (298380 KS) announced licensing agreement with GlaxoSmithKline PLC (GSK LN) to develop novel treatments for neurodegenerative diseases by utilizing ABL Bio’s blood-brain barrier (BBB) shuttle platform, Grabody-B.
• ABL Bio is eligible to receive up to £2.075B in research, development, regulatory, and commercialization milestone payments across multiple potential programs. The company will receive tiered royalties on net sales.
• Last October, ABL Bio completed the manufacturing technology transfer for ABL301, a bispecific antibody containing Grabody-B to treat Parkinson’s disease, to Sanofi and unlocked a milestone payment of $5M.

• GoTo Gojek Tokopedia‘s 4Q2024 is likely just the start of the positive impact of its barbell strategy of enticing new users through affordable products before monetising through premium offerings.
• The rapid turnaround of the fintech business as it booked its first quarterly positive adjusted EBITDA was a key standout and was front and centre of management results comments.
• GOTO remains upbeat in its prospects for 2025, providing its first guidance for adjusted EBITDA, and highlighting the positive contribution from fintech and mid-teens growth for ODS. 

• Tariff Headwinds: U.S. import tariffs could wipe out hardware margins, potentially costing Nintendo up to ¥95bn in FY3/26 gross profit.
• Guidance Risk: With bullish consensus expecting ¥450bn in FY3/26 operating profit, upcoming guidance on July 5 may significantly disappoint.
• Valuation Hinges on Recovery: FY3/27 earnings could rebound to ¥600bn if cycle normalises and tariff risks ease—implying a fair 13x EV/EBIT multiple.

• Siemens is acquiring Dotmatics, a SaaS provider for laboratory management, for USD 5.1bn. The acquisition, which is seen as expensive, reflects high multiples of 16.5x EV/sales for FY 2025.  
• This acquisition strengthens Siemens’ position in life sciences by expanding its industrial software offerings. Dotmatics adds a new USD 5.5bn market opportunity, which could grow to USD 11bn.   
• Siemens’ entry into life sciences may challenge Dassault Systèmes, which currently leads the market with its Biovia and Medidata platforms. Siemens’ growing presence in this sector may intensify competition.

• Last week, I had the great pleasure of meeting with Chief Financial Officer Amrit Shrestha and several of his colleagues at Coca-Cola bottler Haad Thip (HTC TB – US$193 million).
• The company is the exclusive producer and distributor of Coca-Cola products across Thailand’s 14 Southernmost provinces.
• The stock has performed beautifully over time, though sideways since 2021. It trades at a 9.6x P/E ratio and a 6.4% dividend yield.

• With recent approval from state regulators to move forward on planned projects in Bristol, RI and Johnston, RI, the company continues to grow the number of facilities operated under its O&O model, a core objective.
• In 1Q25, AMS acquired property in Bristol, RI where it expects to construct a linear accelerator facility that would likely begin treating patients in about 18-24 months & AMS anticipates significant synergies within its expanding Rhode Island footprint.
• We expect these and other potential new projects will likely leverage an ‘asset-light’ approach that includes partnerships to reduce AMS’s upfront capital investment & enable AMS to retain a majority interest in the centers.

• Reviva is a research and development pharmaceutical company with two portfolio compounds targeting nine indications.
• The candidates address multiple related mental disorders, rare diseases & other categories of un met need.
• Reviva’s lead indication in schizophrenia with brilaroxazine (RP5063) completed its 1st Phase III trial & is set to begin its 2nd in 2025.

• We aim at nearly 0% growth QoQ for Taiwan Semiconductor (TSMC) – ADR (TSM US)‘s revenue in 2Q25, but US tariff can be a changing factor since April, 2025.
• Taiwan Financial Supervisory Commission is announcing on April 6th, 2025 with three temporary methods to prevent a sudden slump of Taiwan stock market today.  
• Taiwan Semiconductor (TSMC) – ADR (TSM US) is taking about 39.2% of Taiwan stock market value, which is the single largest stock in Taiwan.  

• Komeri plans to expand their addressable market by 75% and to double their current market share to 21%.
• Same store sales of the company’s Pro Stores rose an average of more than 7% in the past 8 quarters, and selling area is expanding at more than 25% annually.
• Yet Komeri trades at just 11x earnings, compared to about 16x for Topix and 18x for the median retail stock.

• Tariff introductions in Vietnam were 46%, PRC 34%, Bangladesh 37%, Indonesia 32%, etc, have rocked the textile complex, and share prices have reacted negatively. 
• The companies with the maximum revenue exposure to the US market are Stella International (1836 HK), with 47%, Crystal International (2232 HK), with 38%, and Lever Style (1346 HK), with 58%.
• We anticipate that the negative sentiment will continue to hinder the sector until a reasonable negotiation occurs. In the meantime, there are no beneficiaries in this trade war.

• SK Bioscience (302440 KS) has initiated phase 3 trial of Sanofi-partnered pneumococcal conjugate vaccine candidate in Australia. This year, Phase 3 trial will be initiated in U.S., Korea, and EU.
• This year, SK Bioscience has initiated global Phase 1/2 trials of mRNA Japanese Encephalitis vaccine candidate in Australia and New Zealand. The company aims to secure interim results by 2026.
• ITD Biologika is targeting for a 17% revenue CAGR during 2024–2028. The company aims to achieve EBITDA margin of 25%+ by 2028 and become IPO ready.

• CK Infrastructure Holdings (1038 HK)‘s share price should pick up as its portfolio of non-US infrastructure assets will become increasingly attractive.
• Its assets will benefit from re-pricing as global inflation rates trend higher. Meanwhile, it will gain from the translation of foreign earnings back to HK$.
• The secured 5.7% and 6.2% dividend yield for FY25F and FY26F makes CKI appealing, especially given a track record of 28 consecutive years of dividend hike.

• 2024 results is significantly below expectations. While revenue had negative growth, SG&A expenses remain high.Coupled with net fair value losses after tax on investment properties, we saw ugly net profit.
• As consumer confidence won’t improve in short term, coupled with competition/corporate strategy lag, we adjusted next three-year growth based on 2024 results. This may increase the success rate of privatization.
• Reasonable valuation of Goldlion is 9-14x P/E due to short-term headwinds.If performance picks up due to effective expansion in online channels or popular products launched, P/E may improve to 12-15x.

• FY02/25 revenue was JPY20.0bn (-8.2% YoY), with a net loss of JPY788mn, impacted by declining sales in Japan and China.
• FY02/26 revenue is projected at JPY22.0bn (+10.3% YoY), with expected operating profit of JPY1.0bn and EPS of JPY31.0.
• ZUIKO’s medium-term plan targets FY02/28 revenue of JPY30bn+, with JPY8.0bn from new businesses, and OPM of 8.1%.

• In this insight, we discuss 20 Korean stocks that could outperform the market in the next two months amid global tariff war and local political turmoil.
• Going forward, we believe these 20 Korean stocks could continue to outperform the market in the next couple of months. 
• As the market tries to digest further the uncertainties due to tariff war and the local Presidential election, these 20 stocks could provide sound defensive outperformance. 

• Licensing-Out partnerships are expected to contribute approximately US$6–7 billion in annual upfront payments, US$12–14 billion in milestone payments, and US$25–30 billion in sales-sharing revenues to China’s innovative drug industry.
• SASAC’s new policy promotes SOE M&A to strengthen industrial chains, especially in weaker sectors like biomedicine. The strategic deployment of state-owned capital is set to gain momentum.
• WuXi AppTec is divesting its stake in WuXi XDC, viewing the shares as overvalued and aiming to lock in profits ahead of a potential price correction.

• JSW group aims to become a complete port and logistics solution provider to end customers, by combining JSWIL’s port infrastructure with Navkar’s inland logistics capabilities (CFS, ICD, PFT,CTO license). 
• Access to Navkar’s 100 acres undeveloped land  in strategic areas offers JSW Infrastructure Ltd( JSWIL) opportunities for further development and expansion of logistics infrastructure.
• JSW targets INR 9,000 crore Capex in logistics by FY30, expecting INR 8,000 crore revenue, INR 2,000 crore EBITDA, and 17-18% ROCE.

• SmartRent is undergoing a strategic transformation toward a Software-as-a-Service (SaaS)-focused business model.
• This shift is reflected in the growth of the company’s recurring SaaS subscriptions, which increased to 38% of total revenue in the fourth quarter, up from 19% in the previous year.
• Annual recurring revenue (ARR) grew to $54.4 million, reflecting a year-over-year increase, and SaaS revenue showed a 17% increase during the same period.

• Endava reported its second quarter fiscal year 2025 results with revenue reaching GBP 195.6 million, a 6.6% increase year-over-year, or 9.1% in constant currency.
• This growth was driven by strong business performance in North America and the company’s core modernization offerings.
• Profit before tax stood at GBP 2.5 million, significantly lower than the GBP 10.6 million a year earlier, highlighting ongoing cost challenges and restructuring impacts.

• GFL Environmental Inc. presented a mixed financial performance in its fourth-quarter and annual earnings call for 2024, showcasing both promising growth strategies and some potential headwinds.
• For the quarter, the company reported consolidated revenue of $1.986 billion, outpacing their expectations due to solid waste organic growth and strategic pricing initiatives.
• The company also highlighted a 7% organic growth in the solid waste segment, a sign of resilience and effective management strategies.

• HCA Healthcare delivered a mixed performance in its fourth-quarter 2024 results, reflecting both strengths and challenges faced during the period.
• Positively, the company continued to demonstrate robust demand for healthcare services, with an overall revenue growth of approximately 6% compared to the previous year.
• Key performance indicators like inpatient admissions showed a healthy upward trajectory, with a 3% increase in both categories when measured on a same-facility basis.

• Huntington Ingalls Industries, Inc. (HII) presented its Q4 2024 earnings results with a mixed outcome, reflecting both opportunities and challenges across its various business segments.
• The company reported revenues of $3 billion for the quarter, a decrease of approximately 5% compared to the same period last year.
• This decline was attributed to reduced revenues across all three of HII’s segments.

• MACOM Technology Solutions Holdings, Inc. reported its financial results for the first fiscal quarter of 2025, with notable developments across its key business segments: Industrial & Defense, Data Center, and Telecom.
• The company posted a revenue of $218 million, an 8.7% sequential increase, and an adjusted EPS of $0.79 per diluted share.
• It generated approximately $63 million in free cash flow and maintained a strong cash position with $657 million in cash and short-term investments.

• Marriott Vacations Worldwide reported solid results for the fourth quarter of 2024, underpinned by strong leisure travel demand and strategic adjustments in sales and marketing approaches.
• The company has successfully expanded its sales channels and promotional strategies, leading to a 7% year-over-year increase in contract sales, with first-time buyer sales growing faster.
• This results from innovative initiatives like virtual tours and sales channels such as roadshows and owner cruises.

• This Nasdaq-listed, Hong Kong-based company hopes to apply Traditional Chinese Medicine (TCM) to significant illnesses like ADHD, but that seems unlikely. The company is a family affair, with all research provided by the CEO’s father, so one wonders how objective scientific assessment can be.
• The stock surged by more than 700% in a month without patent approval, a buyout offer, or other notable news. The CEO funded a share buyback, but rather than demonstrating faith in the company, the repurchase looked suspiciously like a way to inflate the short-term share price, possibly for an equity issue or insider self- enrichment since the CEO’s compensation is tied to market capitalization.
• This is a highly speculative business run by a family team from Hong Kong, thus little trusted in the U.S. and very volatile.

• JSW Steel has grown its domestic steelmaking capacity at CAGR of 14% over the last 2 decades (2x industry) and at 25% lower costs
• Gradual capacity ramp-up at recently completed expansion at Vijayanagar (5m) and actively pursuing 10-15mt of new capacity additions over the next 3-5 years
• Valuations: JSW Steel trades at premium to its 5yr average EV/EBITDA likely due to a) impending imposition of a 12% safeguard duty b) superior capital allocation etc.

• The US imposed a 25% tariff on auto imports, affecting Tata Motors’ JLR unit, where the US accounts for 22% of sales.
• This could shave off 200–300 bps from JLR’s EBITDA margin or weaken US volumes if costs are passed on to consumers.  
• Tata Motors’ FY25 EBIT margin guidance of ≥8.5% looks ambitious; a realistic range may shift to 6.5–7.5% without swift demand or cost-side offsets.

• Shell reaffirmed its strategy, prioritizing efficiency, LNG growth, and shareholder returns, unlike BP’s strategic shift back to hydrocarbons after an aggressive renewables push.
• As the world’s largest LNG trader, Shell plans 4%-5% annual LNG sales growth, capitalizing on rising global demand while maintaining financial discipline and emissions targets
• Shell aims to save USD 5 – 7 billion by 2028, cut capex to USD 20 – 22 billion, and streamline operations to enhance free cash flow and investor returns.

• Steven Madden, Ltd. reported solid financial results for the full year 2024, with revenue increasing 15.2% year over-year to $2.3 billion and diluted earnings per share rising 9% to $2.67.
• The company emphasized four key business drivers: international expansion, category diversification beyond footwear, growth in direct-to-consumer (DTC) channels, and reinforcement of its U.S. wholesale footwear business.
• International revenue rose 12%, with notable growth in the EMEA region (18%), including Europe, the Middle East, and South Africa.

• Reynolds Consumer Products, Inc. reported its financial performance for the fourth quarter and full year of 2024.
• The company experienced a modest volumetric growth of 1% in the fourth quarter across its business units, which include Reynolds Cooking & Baking, Hefty Waste & Storage, Presto, and Hefty Tableware.
• Despite navigating a challenging market environment, the company achieved its strongest profitability since the COVID 19 surge in 2020, highlighted by expanded margins and earnings surpassing initial projections.

• During 9MFY25, Paramount Bed Holdings Co Lt (7817 JP) reported 3% YoY revenue growth to ¥75B, mainly driven by the nursing care businesses.
• Due to higher SG&A expenses, operating profit decreased 15% YoY to ¥7.2B and net profit was down 11% YoY to ¥5.9B.
• Paramount Bed has reiterated FY25 guidance, which calls for 2% YoY revenue growth, while higher SG&A is expected to erode operating profit by almost 6% YoY.

• Boise Cascade’s fourth quarter and full-year 2024 results reflect a mix of achievements and challenges.
• For the full year, Boise Cascade recorded a net income of $376.4 million or $9.57 per diluted share.
• This performance was supported by growth initiatives in their distribution business, notable capital investments aimed at bolstering their Engineered Wood Products (EWP) growth strategy, and significant capital returns to shareholders.

• BigCommerce’s fourth quarter and fiscal year 2024 earnings announcement revealed a mixed financial performance as the company navigates its transformational strategy towards more efficient and profitable operations.
• The company’s non-GAAP operating income showed a remarkable improvement, surpassing $19 million, which is nearly double the original forecast, while operating cash flow reached $26 million, marking a $50 million increase from 2023.
• These outcomes underscore BigCommerce’s effective cost management, attributed to decreased ineffective sales and marketing expenditure and a 10% headcount reduction.

• What you need to know: • We visited Amerigo’s MVC processing facility in Rancagua, Chile and were highly impressed with the site and plant, as well as the scale of the operation.
• • The copper price increased substantially after Q4, positioning the Company for even stronger cash flow in Q1/25.
• • For more information on ARG, you can find all our research on our website here and an interview we hosted with CEO Aurora Davidson, here.

• Dream International (1126 HK) posted strong results, with revenues up 2% and profits down 11% YoY, demonstrating effective cost control in a challenging competitive environment.
• Net cash on the balance sheet ended at 1.52 bn HKD (vs 1.35 bn), representing 33% of market capitalization. The company rewarded shareholders with 60 cents of dividend (~8.9% yield). 
• Trading at 6x/3x PE/EV-EBITDA FY24, with an 8.9% dividend yield and an average 10-year ROCE of 20%, the stock is worth exploring from here. 

• We remain steadfast in our belief in our company’s future. That said, there are no quick fixes. We need to demonstrate consistent execution and results over a sustained period. Frank Yeary
• Intel’s ELT scored themselves a remarkable 29.7 out of 35 for their 2024 “Product Leadership” goal, despite mounting data center market share loss and Gaudi being an abject failure
• While Pat Gelsinger’s departure from Intel was labelled a “retirement” last December, the Proxy Statement refers to it as a “resignation”. Which was it?

• The Swedish startup has formally filed for a US IPO and is aiming to raise $1 billion, at a valuation of between $15 billion and $20 billion. 
• Buy now, pay later is one of the biggest shifts in modern finance. Klarna isn’t just BNPL anymore: it has a whole shopping and payments ecosystem.
• Klarna may be a heavyweight in BNPL, but it’s not alone in the ring. Heavy hitters like Affirm, Afterpay, and PayPal are also scrambling for dominance.

• CNMC Goldmine Holdings (CNMC SP) is a cash-rich (net cash: 20 million SGD) gold play listed on the SGX with assets in Malaysia. Its market cap is 155 million SGD.
• The company is a high-cost gold play, with cash costs of 1200 USD/oz excluding royalties. It is in the process of ramping production from 26,000 oz to 34,000 oz/annum.
• Based on a 3000 USD/oz gold price, the stock trades at 5.7x PE, 4.0x EV-EBITDA with a 2.9% dividend yield (based on a 30% payout ratio). 

• WNS Holdings reported its fiscal 2025 third-quarter results, highlighting some key financial metrics and operational dynamics.
• The company achieved net revenue of $319.1 million, marking a year over-year increase of 1% on a reported basis, though it remained flat when adjusted for constant currency.
• Sequentially, however, there was a more robust performance with revenue increasing by 2.7% on a reported basis and 3.2% in constant currency terms.

• American Express Global Business Travel reported strong financial performance for the fourth quarter and full year of 2024, showcasing a record year for adjusted EBITDA and revenue.
• The company exceeded the midpoint of its guidance range, with adjusted EBITDA rising by 26% year-over-year.
• These results were driven by growth in technology-enabled productivity, a scalable cost base, and robust free cash flow generation.

• As of today, Walmart finds itself at a crossroads.
• The retail giant, long seen as a haven during economic uncertainty, saw its market capitalization drop by nearly $22 billion in a single day after the Conference Board reported that U.S. consumer confidence hit a 12-year low.
• This marks the fourth consecutive monthly decline, with the expectations index plummeting to 65.2 — a level that typically signals a looming recession.

• Spectrum Brands Holdings, Inc. had a mixed first quarter of fiscal year 2025, as revealed in their recent financial results.
• The company experienced a modest increase in net sales, driven by strategic investments and several successful initiatives across its business segments.
• Net sales grew by 1.2% overall, with organic sales, excluding unfavorable foreign exchange impacts, rising by 1.9%.

• GoodRx, the company focused on providing users with discounts on prescriptions and other healthcare services, recently reported its financial results for the fourth quarter and full year of 2024.
• The company highlighted several strategic initiatives and partnerships aimed at driving future growth, including enhanced partnerships with pharmacies, pharmaceutical manufacturers, and healthcare professionals.
• In terms of financial performance, GoodRx posted fourth-quarter revenue of $198.6 million and an adjusted EBITDA of $67.1 million.

Refocusing a business takes time, especially when it involves replacing legacy systems, renegotiating framework agreements, integrating numerous acquisitions and rebuilding the balance sheet. The process becomes even more challenging if it coincides with weak market conditions and a significant level of geopolitical uncertainty. Dustin Group’s management is actively addressing these challenges, including a rights issue announced with its results. The business is well positioned, leaving investors with one key question: when is the right time to buy? We believe the next six months may provide the answer.

• In this insight, we discuss a pair trade between LG Chem Ltd (051910 KS) (common) and LG Chem (051915 KS) (preferred). 
• The price ratio (LG Chem common/preferred) is now at 2.16x, which is more than 2 STD (standard deviations). Our trading strategy involves revert to the mean. 
• One of the key reasons why LG Chem (preferred)’s share price has fared much worse YTD than LG Chem (common) is due to much larger selling by the foreign investors. 

• The Hong Kong Alpha simulated portfolio returned 0.97% in March outperforming its benchmark by 1.1%.  Since inception the portfolio has outperformed Hong Kong indexes by 8% to 11%.
• The portfolio has generated alpha while maintaining a correlation of 0.8 and a beta of 1.05.  The HK Alpha portfolio has a Sharpe ratio of 2.19 YTD.
• On 3/31/25 we sold Shanghai Electric Group Company (2727 HK) , Citic Securities (H) (6030 HK) , Sands China (1928 HK) , and Sunny Optical Technology Group (2382 HK)

• Murakami-Led funds have quietly amassed a 26.97% stake in Sumi Mitsui Construction while also acquiring a 5.01% stake in its subsidiary, Sumiken.
• With the Tokyo Stock Exchange clamping down on parent-child listings, Sumiken’s future as a public company looks increasingly uncertain, raising buyout speculation.
• City Index’s small stake in Sumiken may serve as a defensive move to block rival bids, reinforcing its influence over SMC’s long-term strategy.

• CEO Mr TAN confronts what’s wrong: Intel needs better product performance, to listen to the market needs. Intel needs Foundry processes that support customers’ designs. Not the other way around. 
• Product presentation very off-base: robotaxi, AI-PC, Gaudi 3 is back as Intel’s AI strategy. Foundry non-announcement: 18A risk production is starting – of course it is, otherwise 18A is flawed. 
• Consensus is expecting a swift turnaround in 2026-27. There is currently no reason to believe this. On these rosy expectations, the stock trades at 19x 2026 EPS.

• Sarimelati Kencana (PZZA IJ) booked a profit in 4Q2024, and the company will remain profitable in 1Q2024, with a strong uptick expected in 2Q2024 and a profit expected for FY2025. 
• The company has been focused on reducing costs and improving efficiencies, booking a record gross profit margin in 4Q2024, and is now able to book a profit with lower sales. 
• Sarimelati Kencana remains a leading quick-service food provider in Indonesia, with prospects improving as it starts to book sustainable profits, with significant upside if it books sales at pre-COVID levels. 

• Copa Holdings delivered a mixed yet robust performance in the fourth quarter and full year of 2024, illustrating its resilience and operational efficiency in a fluctuating market.
• Positively, the company reported an operating margin of 21.9% for the year, which reflects consistent execution of its business model focused on cost efficiency and operational excellence.
• An increase in capacity by 8.6% year-over-year was aligned with previous guidance.

• Atour (ATAT) reported C4Q24 revenue 0.7%/5.8% higher than our estimate/consensus, which translate to 0.5%/4.7% higher in non-GAAP net income, thanks to hotel supply chain consolidation and pillow retail sales.
• Management’s guidance for a steeper-than-consensus decline in 2025’s RevPAR are conservative in our view. We see a “low-before-high” RevPAR pattern in 2025, supported by tightened hotel supply and government stimuli.
• We keep the TP at US$37/ADS and maintain as travel sector TOP BUY

• Warburg Pincus invests in Japan living sector by acquiring a 16,000-room portfolio.
• Proprium Capital beats out Ho Bee Land with a $228M bid for an Australian homebuilder.
• Hillhouse’s Rava secures majority stake in Dash Living with $150M investment; Ex-Macquarie exec Robson to advise on ESR privatization.

• BPO provider WNS is reported exploring a potential sale after attracting acquisition interest. The company has a market capitalisation of USD 2.89bn and operates across various sectors.   
• We deem Capgemini could afford to acquire WNS, but such a move may not align with its strategic focus, despite the diversification benefits that a hypothetical acquisition would offer.   
• The rise of generative AI could transform BPO, but it remains unclear whether Capgemini will pursue acquisitions in BPO, given its past strategy of focusing on cloud, digital and engineering.

• Advanced Energy Industries, Inc. reported its fourth quarter and full-year 2024 financial results, demonstrating a strong finish to the year after a rocky start.
• The company achieved notable highlights, with Q4 revenue reaching $450 million, an 11% increase sequentially and 3% year-over-year, driven by strong performance in semiconductor and data center computing markets.
• Advanced Energy’s semiconductor revenue, at $227 million, marked a 15% sequential increase and 19% year-over-year growth.

• Shougang Fushan Resources’ (639 HK) FY24 revenues/profits were down 14%/21% YoY due to the decline in coking coal prices, which were 14% YoY to 1666 RMB/ton (on similar volumes). 
• At 1295 RMB/ton, spot prices are 25% lower than last year’s average, yet the stock is supported by cash, which represents 80% of its market capitalization (10 billion HKD).
• The company provided a 100% payout of 30 HKD cents, resulting in a 12% dividend yield; however, at current spot prices, the yield is 7%.

• Exhibiting home revenue recovered significantly in 4Q24, while new home revenue recovered from 3Q24.
• The growth rate of active stores and active agents accelerated quarter by quarter.
• We conclude an upside of 105% and a price target of US$42.00. Buy.

• We calculated that after the privatisation of ENN Energy (2688 HK), the EPS of ENN Natural Gas (600803 CH) will be Rmb1.94 for FY25F and Rmb2.11 for FY26F.
• By using ENN Energy’s undisturbed PER (with and without a 10% discount) and Kunlun Energy (135 HK)‘s ex-cash PER, ENN-NG H-share is worth 6.8-7.9x for FY25F and 6.3-7.2x for FY26F.
• ENN-NG H-share is hence valued at HK$14.11-16.37, implying that ENN Energy’s value under the privatisation proposal is HK$66.02-72.67, which is lower than Somerly’s HK$80 estimate.

• Rather than love, than money, than fame, give me the truth
• I intend to under promise and over deliver. I will not be satisfied until we delight you
• How long will I stay at Intel? I’m here for as long as it takes

• TCM finished drugs and TCM decoction pieces businesses could be the second and third growth curve of China TCM when the concentrated TCM granules business is facing VBP headwinds.
• 2024 would be the performance low point. Due to 2024 low base, we would see positive growth in 2025.Performance recovery is expected in next three years based on our forecast.
• Annual profit of RMB1 billion is achievable. If based on 10x P/E, market value is RMB10 billion.We think if valuations fall below RMB10 billion, investors can consider buying on dips.

• In this insight, we discuss numerous gap trade opportunities involving Korean preferred and common shares in 2Q 2025.
• The following five pairs (between common and prefs) have experienced more than 10% difference in their share prices in the past six months. 
• These five pairs (LG Chem, Amorepacific Corp, Amorepacific Group, CJ Cheiljedang, and Korea Investment Holdings) are more likely to revert to closing their gaps in the coming weeks. 

• In this Insight, we aim to understand the current demand, environment, competition, and margin trends for major air conditioner manufacturers in India.
• Dealers remain optimistic despite a slower seasonal start, anticipating accelerated growth in this season. While there have been price increases, competition, and cost inflation may not translate into margins. 
• Some of the companies in Focus include Voltas Ltd (VOLT IN), Havells India (HAVL IN), Johnson Controls-Hitachi Air Conditioning India (JCHAC IN).

• GoI converts ₹36,950 crore of spectrum dues into equity, increasing its stake to ~49%. Promoters’ stake diluted to ~25.5%, with public shareholders now owning just ~23.8%. 
• While the move eases cash outflows till H1FY28, Vodafone Idea’s AGR dues, weak subscriber base, and funding needs remain material headwinds.
• Structural concerns remain unresolved, and further dilution risks persist along with loosing market share.

• In January 2024, SHiDAX Corporation was consolidated as a subsidiary, boosting sales and EBITDA in Q4 FY03/24.
• Cumulative Q3 FY03/25 progress rates: 75.9% sales, 93.7% EBITDA, 84.4% operating profit, 110.5% net income.
• B2C Subscription sales decreased YoY, but segment profit increased due to higher ARPU and cost-efficient acquisitions.

• On March 31st 2025 I spoke to Mark Schneider of investor relations from IAC.
• Mark currently covers investor relations for Angi, Inc as well. but Angi will be hiring its new head of investor relations soon.
• Our conversation was productive and increased my confidence in the outlook for Angi.

• Fast Retailing (9983 JP)  is set to report its second-quarter results on April 10, and we see an opportunity to buy ahead of a strong earnings release
• We expect Fast Retailing to post Q2 sales of ¥905bn (+15% YoY), above consensus estimates of ¥881bn. EBIT projected at ¥133bn (+21% YoY), ahead of street expectations of ¥125bn.
• Domestic Uniqlo monthly sales and quarterly results from global peers suggest strong sales momentum. 

• In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 2Q 2025.
• Among the 38 holdcos/opcos, there have been several pairs that have resulted in significant price ratio divergence which could provide trading opportunities in terms of their pricing gaps closing reversal.
• Given the resumption in short selling in Korea, there is going to be a lot more interest in pair trades in Korea, especially among the major Korean holdcos/opcos. 

• Reports of merger between UMC and GlobalFoundries. Beyond the threat of US import tariffs for UMC, it would create a larger firm to counter SMIC’s expansion. Easier said than done
• TSMC second 2nm Fab in KaoHsiung “inaugurated”, 2nm production unchanged mid of 2025. A16 process and equipment qualification underway for risk production in 2027.
• Biden era CHIPS Act subsidies (US$52bn) could be cancelled or the program is completed and the assigned staff leaving?

• TSMC Accelerates U.S. Expansion — New Arizona Fab to Be Built at ‘Taiwan Speed’
• Phison CEO Sees Decade-Long Boom for NAND Flash as AI Shifts to the Edge
• Delta Taiwan Vs. Thailand Monitor: Delta Thailand Crash Closes Gap, But Still Relatively Expensive 

• UiPath reported its fourth-quarter and full-year fiscal 2025 financial performance, marking several high and low points that are critical for investors to examine as they consider their future involvement with the company.
• On the positive side, UiPath achieved a quarterly revenue of $424 million, with only a slight impact from foreign exchange fluctuations.
• For the full fiscal year, revenue increased to $1.43 billion, reflecting a 9% improvement year-over-year.

• MIXI has announced an all-cash deal worth ¥35.2bn for PointsBet Holdings (PBH), an Australian sports and racing online betting company operating in Australia and Canada.
• The deal is due to close in mid-June 2025. We view this transaction as aligned with MIXI’s strategies of business diversification and overseas expansion, leveraging the expertise gained from TIPSTAR in Japan’s keirin and auto-race betting businesses to enter the Australian market, thereby accelerating the growth of both TIPSTAR and PointsBet.
• MIXI is demonstrating a positive and active allocation of its capital, with a high intent to accelerate the development of its Sports business and make it a key earnings pillar.

• TEGNA Inc. recently presented its fourth-quarter and full-year 2024 financial results, demonstrating both opportunities and challenges for potential investors.
• The company reported a significant 20% year-over-year increase in total revenue for the fourth quarter, amounting to $871 million, primarily driven by political advertising revenues.
• However, the political advertising performance nearly matched that of the 2020 election cycle, indicating the cyclical nature of this revenue stream.

• C3.ai has exhibited a solid performance in the third fiscal quarter of 2025, ending January 31, 2025, with both positive developments and certain challenges.
• The company reported total revenue of $98.8 million, representing a 26% increase year-over-year.
• Subscription revenue, constituting the majority of its revenue, grew by 22% to $85.7 million.

• Dalata Hotel recently announced a formal sales process. Last few days have been really busy ;ppp and I’ve been using time on the road to conjure my “tin-foil hat” hypotheses and squeezing out whatever spare time I have to eke out this article.
• Before going on, I’d like to highlight that amidst the market chaos, there seems to be a fair few interesting things popping – for e.g. last week, I highlighted DLTR selling off its FD stake and how DLTR deserved a rerating; in other news, Intel has also successfully divested its memory chip business (this time, IP and manpower) over to Sk Hynix, netting a ~1.9b cash infusion and also an indication of focus on its core “less-commoditized” logic chips business.
• Tan Lip Bu also finished acquiring his 25m worth of shares at ~$23.96 per share. Yet, INTC has traded down with the rest of its boys, as the semicon indices continually to get smacked downwards. Exciting times ahead.

• MasTec Inc. has reported strong financial results for the fourth quarter and full year 2024.
• The company’s performance exceeded expectations across several key metrics, including revenue, adjusted EBITDA, and earnings per share (EPS).
• For the fourth quarter, MasTec achieved a revenue of $3.4 billion with an adjusted EBITDA of $271 million, marking a 20% year-over-year increase.

• TSMC: +14.9% Premium; Spread Has Fallen Close to Long Levels
• UMC: -2.6% Discount; Good Level to Go Long the Spread
• ASE: -3.2% Discount; Spread at Extreme Low, Good Level to Go Long

• China International Capital Corporation (3908 HK)‘s 2H24 net profit surged 33.6% in 2H24, reversing the downtrend in 1H24. It has benefited from lower staff and other operating costs. 
• Better 1Q25 market turnover and activities, more IPOs and placements and improved cost dynamics imply that the consensus forecasts are too conservative.
• Its 0.55x P/B cannot adequately reflect better profitability. Despite the denial, CICC’s potential merger with China Galaxy Securities (H) (6881 HK) cannot be completely ruled out.

• Global Digital Niaga (BELI IJ) booked a strong finish to 2024, driven by its 3P retail and institutional business, although 1P retail and physical stores also performed well. 
• The company continues to see improving take rates in FY2024, whilst its average order value increased through a more favourable product mix, with gross margins and cash flows improving significantly.
• Global Digital Niaga continued to expand its physical stores for monobrand and multibrand stores, adding Huawei as a brand. Valuations look reasonable given growth prospects and progress towards profitability.

• Edelweiss reported a decent Q3FY25 with ex-Insurance PAT of INR 185cr, a growth of 16% YoY excluding NBFC PAT. Growth was led by Asset Management and Insurance businesses.
• Within the Credit business, the Home Finance business which operates under the brand Nido is scaling up well. It disbursed INR 400cr+ worth of retail loans during Q3FY25.
• Edelweiss is focusing on unlocking value and has already filed DRHP for its Alternative Asset Management business. Once approved, it will proceed for an IPO with OFS of INR 1500cr.

• Nuvama continues to post strong earnings. Its Q3FY25 revenues grew 30% YoY to INR 723cr. Q3FY25 PAT grew 43% YoY to INR 252cr. 
• Q3FY25 performance was surprisingly led by the Asset Services segment where revenue grew 77% YoY with addition of new clients and positive asset flow, leading to market share gain.
• Together the Wealth and Asset Management segments performed steady with revenue growth of 18% YoY. Net flows in 9MFY25 in ARR and MPIS assets exceeded that for whole of FY24.

• Nesco reported a strong Q3FY25 with 16% YoY revenue growth and 17% YoY PAT growth. The exhibitions (BEC) segment grew 13% YoY and the IT Parks segment grew 16% YoY.
• Nesco Foods segment reported 29% YoY growth in revenues led by improved BEC footfalls and scaling up of the Food Court and Restaurants business.
• Recently, Nesco also received IOD from the municipal corporation of Mumbai, thus paving way for receiving future approvals for Tower 2. Tower 2 construction is expected to commence in Q3FY26. 

• Delta Thailand Has Dramatically Underperformed Delta Taiwan — Delta Thailand Now Finally Trading at a Less Extreme Level vs. Delta Taiwan
• Latest Relative Growth Profiles — Delta Taiwan Has Higher Growth Profile in 2025E
• Even After the Major Pricing Reversion Since Mid-February, Delta Thailand Remains Overvalued Relative to Delta Taiwan

• HealthCare Global Enterprises (“HCG”) reported a strong Q3FY25 despite Q3 being a seasonally weak quarter. Revenue growth was strong across both the established centers and the emerging centers.
• Revenue from established centers grew 20% YoY while that from emerging centers grew 25% YoY in Q3FY25. Within emerging centers, Kolkata led the growth with 40% YoY rise in revenues.
• HCG saw promoter change in Feb 2025. KKR announced acquisition of 54% stake from CVC who owns around 60%+. Dr. BS Ajaikumar, the founder promoter, will continue to own 10%+.

• Earlier this month, RPPL announced a new factory to expand its thermoforming and extrusion capacity by 1250 MTPA and 1600 MTPA, respectively. This will come on-stream within a month.
• RPPL reported a weak Q3FY25 due to adverse fluctuation in raw material prices as well as seasonal impact. Q3 tends to be a weak quarter seasonally.
• RPPL’s capacity expansion has been leading to upfront expenses. The new Olive Ecopak JV also reported losses, share of which was INR -2.6cr in Q3FY25.

• Sariguna Primatirta (CLEO IJ) booked yet another quarter of impressive sequential growth in 4Q2024, hitting another record quarterly revenue, with margins improving at the same time, boosting profits.
• The company opened three factories in 2024 and plans three more in FY2025, with the total to 35 across Indonesia and further extending its scale and reach, and driving growth.
• The main driver for growth will come through general trade, which makes up 70% of distribution, with a factory opening push outside Java. Valuations are attractive versus growth.

• Prodia (PRDA IJ) FY2024 results reflect an impending recovery, with the company aggressively expanding its outlets by adding 73 over the year, and mostly lower cost points of collection. 
• The company continues to roll out new tests, with more emphasis on esoteric testing, but also looking at routine testing. It will continue opening new outlets in 2025. 
• Prodia also continues to expand its digital capabilities through U by Prodia for patients and Prodia for Doctors, and Prodialink. Valuations look attractive with Prodia trading on a low-single-digit EV/EBITDA,

• Backed by DP World (DPW DU), Asian Terminals (ATI PM) is one of the largest owners and operators of ports and related infrastructure in the Philippines.
• We are impressed with the company’s excellent financials including consistent profit margins and free cash flow, strong market share, and execution of its business strategies.
• It also trades at cheap valuations with solid dividends and it has also been buying back shares. 

• The 1Q25 outlook is slightly affected by earthquakes, but production can resume in late 1Q25.
• The UMC 12nm project could be in vain if Intel collaborates with TSMC or if TSMC takes over Intel’s foundry service.   
• UMC’s annual revenue could see a -5% year-over-year growth in 2025, but there may be a few percentages increase in wafer shipments.  

• Innovent Biologics Inc (1801 HK) has announced 2024 result, with total revenue increasing a whopping 52% YoY to RMB9,422M and net loss narrowing 91% YoY to RMB933M.
• On adjusted basis, the company reported maiden net profit of RMB332M compared with loss of RMB515M in 2023. Innovent is expected to become profitable on reported basis this year.
• Innovent aims to achieve RMB 20B product revenue in 2027, implying a CAGR of 34% and advance five pipeline assets to the global/multi-regional Phase 3 clinical trial stage by 2030. 

• Cheniere Energy posted robust results for the fourth quarter and full year 2024, demonstrating its strong operational and financial performance.
• The company reported a consolidated adjusted EBITDA of approximately $1.6 billion for the fourth quarter, with a full-year total of $6.155 billion.
• This reflects solid underlying business performance, driven by Cheniere’s focus on safety, operational excellence, customer engagement, and financial discipline.

• DENTSPLY SIRONA’s fourth-quarter and full-year 2024 earnings report reflects a mixed performance amid ongoing challenges and strategic repositioning.
• On the positive side, the company experienced growth in several areas, including a 13% uplift in imaging and a 7% increase in Wellspect sales.
• In Europe, DENTSPLY SIRONA achieved a 2% organic sales growth, supported by significant momentum in Germany and a 20% year-on-year growth in the SureSmile business.

• GitLab Inc. delivered a strong performance in the fourth quarter of fiscal year 2025, showcasing impressive top line growth and improved profitability metrics.
• The company’s revenue increased by 29% year-over-year to $211.4 million, driven by robust momentum in its enterprise offerings, particularly GitLab’s Ultimate and Duo products.
• Notably, the company demonstrated significant operating leverage with a non-GAAP operating margin of 17.7%, an increase of more than 960 basis points compared to the same period in the previous year.

• HashiCorp has reported its fiscal 2024 fourth-quarter earnings, surpassing expectations with $156 million in revenue, signaling a 15% year-over-year growth.
• The company has shown strong overall performance in the context of a challenging economic landscape, indicating potential recovery signs in the market.
• The non-GAAP remaining performance obligations also reported a growth of 21% year-over-year, reaching $483 million, reflecting continuous demand for its offerings.

• Lumentum Holdings recently released its second-quarter fiscal year 2025 earnings, presenting a blend of strong performance in certain segments and ongoing challenges in others.
• Led by CEO Alan Lowe, who has announced his retirement, the company highlighted key financial results and strategic initiatives amidst a backdrop of leadership transition.
• In the second quarter, Lumentum exceeded the high end of its guidance range for both revenue and earnings per share.

• Macy’s Inc.’s fourth quarter 2024 results reflect a mixture of strategic advancements and continued challenges within a shifting retail landscape.
• First, the positive aspect of Macy’s strategy comes through its “Bold New Chapter” framework, which focuses on enhancing customer experiences, optimizing store operations, and improving merchandising and digital capabilities.
• This plan is seemingly paying off as Macy’s achieved a 0.2% year-over-year increase in comparable sales, marking its best performance in 11 quarters.