Core Viewpoint - Thailand is facing a new political crisis that threatens its economy, which is already on the brink of a technical recession, necessitating a potential interest rate cut by the central bank to stabilize the situation [1] Economic Situation - Thailand's economy is at risk due to ongoing political instability and the impact of the global trade war [1] - The country experienced lower economic growth last year compared to neighboring countries such as Indonesia, Malaysia, the Philippines, and Singapore [1] Political Context - The current Prime Minister, Prayut Chan-o-cha, is facing internal divisions within the ruling coalition, which could lead to legislative stagnation and affect trade negotiations with the United States [1] - The previous Prime Minister was ousted by a court ruling, and her father was overthrown in a military coup, highlighting the political volatility [1] Recommendations - Mizuho Bank's macro research head for Asia, Vishnu Varathan, suggests that the Bank of Thailand may need to accelerate interest rate cuts by 50 to 75 basis points to boost economic confidence [1] - There is an urgent need for additional stimulus measures due to weakened business confidence and fragile market sentiment [1]

Group 1 - The meeting between Guangzhou officials and Japanese business leaders aims to strengthen practical cooperation and attract more international partners to invest in Guangzhou [1][2] - Guangzhou is positioned as a key city in China and the core engine of the Guangdong-Hong Kong-Macao Greater Bay Area, focusing on high-level opening-up and international cooperation in industrial supply chains [2][3] - The city encourages Japanese companies to deepen their engagement in sectors such as new energy vehicles, low-altitude economy, smart manufacturing, healthcare, and modern finance [2][3] Group 2 - CITIC Group emphasizes its strong foundation and deep cooperation with Guangzhou, aiming to accelerate key project implementation and enhance financial services for the real economy [3] - Japanese companies express confidence in expanding their business in Guangzhou, viewing it as a prime location for entering the Chinese market [3]

Core Insights - Mizuho Americas has been awarded the 2025 Global Markets Choice Awards for Best in CLOs and Best in Equity Research, highlighting its strong performance in these sectors [1][4]. CLO Market Performance - Launched in 2022, Mizuho Americas' CLO team has quickly established itself as a top player in the CLO market, achieving a top five ranking in broadly syndicated CLO new issues by volume [2]. - The team arranged 37 deals in 2024 and 24 deals year-to-date in 2025, receiving recognition for its strong execution from CLO managers and investors [2]. - Mizuho's connections with Japanese clients, a significant investor region for CLO AAA, have contributed to its success and innovation in the market [2]. Equity Research Advancements - Mizuho Americas' Equity Research has been recognized for its advancements, which have been crucial for the success of its Equity and Banking franchises [3]. - The award for Best in Equity Research reflects the firm's ability to generate alpha through differentiated research for investor and corporate clients [4]. - Bill Featherson's leadership has significantly elevated the US Equity Research product since joining Mizuho, enhancing its research capabilities [4]. Company Overview - Mizuho Financial Group, Inc. is one of the largest financial institutions globally, with total assets of approximately $2 trillion [5]. - The company employs around 65,000 professionals worldwide, providing comprehensive financial services across 36 countries and 850 offices [5][6]. - Mizuho Americas offers a full spectrum of client-driven solutions, including strategic advisory, capital markets, corporate banking, and fixed income and equities sales & trading [6].

Company Overview - Mizuho Financial Group, Inc. is one of the largest financial institutions globally, with total assets of approximately $2 trillion as of 2024 [4] - Mizuho Americas operates as a leading Corporate and Investment Bank (CIB), providing a full range of client-driven solutions including strategic advisory, capital markets, corporate banking, and fixed income and equities sales & trading [5] - The company has a workforce of around 65,000 employees worldwide and approximately 4,000 professionals in Mizuho Americas [4][5] Recent Developments - Mizuho Americas announced the hiring of Nick Setyan as Managing Director and Senior Equity Research Analyst for the Restaurant sector [1] - Setyan brings 15 years of experience in the restaurant sector, previously serving as Managing Director and Equity Research Analyst at Wedbush Securities [2] - His expertise and relationships within the industry are expected to enhance Mizuho's research capabilities [3]

Core Viewpoint - The research service "Asia Value & Moat Stocks" targets value investors looking for Asia-listed stocks that exhibit a significant disparity between market price and intrinsic value, focusing on deep value balance sheet bargains and wide moat stocks [1] Group 1: Investment Focus - The service emphasizes deep value balance sheet bargains, which include net cash stocks, net-nets, low price-to-book (P/B) stocks, and sum-of-the-parts discounts [1] - It also highlights wide moat stocks, which are characterized by strong earnings power at a discount, including high-quality businesses and hidden champions [1] Group 2: Market Emphasis - The primary focus of the investment ideas is on the Hong Kong market, providing a range of watch lists with monthly updates for investors [1]

Core Viewpoint - Mizuho Financial Group is adopting a "very conservative" investment strategy by significantly reducing its bond holdings while awaiting clearer signals from the Bank of Japan regarding interest rate policies [1][2]. Group 1: Bond Holdings and Strategy - Mizuho has drastically cut its holdings of Japanese government bonds from 25.1 trillion yen (approximately 170 billion USD) three years ago to 8.3 trillion yen (about 57 billion USD) as of March this year [1]. - The bank's foreign bond holdings increased from 8.9 trillion yen to 11.8 trillion yen, but the value has decreased compared to last year due to recognized losses [1]. - Mizuho's average remaining maturity for Japanese government bonds is one year, while for foreign bonds it is two years, indicating a preference for shorter-term investments [6]. Group 2: Market Conditions and Reactions - The demand for Japanese government bonds has reached a 12-year low, with the bid-to-cover ratio for 20-year bonds dropping to 2.5 times, the lowest since 2012 [2]. - The yield on 20-year Japanese government bonds surged approximately 15 basis points, reaching the highest level since 2000, while the 30-year bond yield also hit a record high since its issuance in 1999 [4]. - The Bank of Japan is currently adjusting its quantitative tightening process, with mixed opinions among market participants regarding the pace of bond purchases [7]. Group 3: Future Plans and Market Outlook - Mizuho plans to sell at least 350 billion yen worth of "strategic" holdings over the next three years to strengthen relationships with corporate clients [6]. - The bank is unlikely to engage in investment banking transactions in the U.S. and has already established sufficient products through its acquisition of Greenhill & Co. [6]. - Concerns about fiscal risks and supply excess are leading some investors to avoid ultra-long-term bonds [7].

Core Viewpoint - Investors in the Banks - Foreign sector should consider Mizuho (MFG) and National Australia Bank Ltd. (NABZY) for potential value opportunities [1] Group 1: Investment Metrics - Both Mizuho and National Australia Bank Ltd. have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions [3] - MFG has a forward P/E ratio of 10.28, while NABZY has a forward P/E of 16.43, suggesting MFG may be undervalued [5] - MFG's PEG ratio is 0.65, compared to NABZY's PEG ratio of 12.26, indicating MFG's better valuation relative to its expected earnings growth [5] Group 2: Valuation Comparisons - MFG has a P/B ratio of 0.93, while NABZY has a P/B of 1.83, further supporting MFG as the more attractive value option [6] - Based on various valuation metrics, MFG holds a Value grade of B, whereas NABZY has a Value grade of D, highlighting MFG's superior value proposition [6]

Core Viewpoint - Japanese megabanks are anticipated to report better-than-expected earnings for the fiscal year ending March 31, based on analyst estimates from S&P Global's Visible Alpha platform [2] Company Summary - Mitsubishi UFJ Financial Group Inc. (MUFG) is expected to post strong earnings [2]

Core Insights - The article discusses the investment strategy of GARP (Growth at a Reasonable Price) as a hybrid approach that combines elements of both value and growth investing, particularly in uncertain market conditions [2][3][5]. Investment Strategy - GARP investing prioritizes the PEG (Price/Earnings Growth) ratio, which relates a stock's P/E ratio to its future earnings growth rate, providing a more comprehensive view of a stock's potential [5][6]. - A lower PEG ratio, ideally below 1, indicates both undervaluation and future growth potential, making it attractive for GARP investors [6]. Stock Performance - Several stocks have shown significant success using the GARP strategy, including Takeda Pharmaceutical, Five9, LATAM Airlines, and Mizuho Financial Group [4]. - Takeda Pharmaceutical has a Zacks Rank of 1, a Value Score of A, and a long-term expected growth rate of 35% [11]. - Five9 holds a Zacks Rank of 2, a Value Score of B, and a historical growth rate of 19.3% [13]. - LATAM Airlines also has a Zacks Rank of 1, a Value Score of A, and an expected growth rate of 14.8% [14]. - Mizuho Financial has a Zacks Rank of 2, a Value Score of B, and a long-term expected growth rate of 15.9% [16]. Screening Criteria - Effective GARP investing involves screening for stocks with a PEG ratio less than the industry median, a P/E ratio below the industry median, a Zacks Rank of 1 or 2, a market capitalization greater than $1 billion, and an average 20-day trading volume exceeding 50,000 [8][9].

Group 1 - Mizuho Americas has appointed Lloyd Walmsley as Managing Director and Senior Equity Research Analyst for the Internet sector [1] - Walmsley brings over 20 years of experience in the Internet sector and has received recognition in Institutional Investor's All-America Research Team, ranking fifth among Hedge Funds and eighth in the US Large Cap Internet sector in 2023 [2] - Prior to joining Mizuho, Walmsley was at UBS Securities, where he significantly expanded his research coverage team and organized the firm's first Private Software and Internet Conference [2][3] Group 2 - Walmsley's previous experience includes a role at Deutsche Bank, where his team ranked ninth in Internet Equity Research in 2020, and he has held positions at Skiff, Thomas Weisel Partners, Credit Suisse, and worked as an M&A investment banker at Lazard [3] - Mizuho Financial Group, Inc. is one of the largest financial institutions globally, with total assets of approximately $2 trillion as of 2024 [5] - Mizuho Americas provides a wide range of financial services, including strategic advisory, capital markets, corporate banking, and fixed income and equities sales & trading, employing around 4,000 professionals [6]