Core Insights - Indian companies are increasingly pursuing acquisitions in Europe, with the value of mergers and acquisitions reaching $5.7 billion in 2025, the highest since 2020, but still below the record of $15.4 billion in 2006 [1][7]. Group 1: Major Acquisitions - Tata Motors Ltd. is leading the acquisition trend with its offer to buy Iveco Group NV for approximately €3.8 billion ($4.4 billion), marking a significant entry into Europe's commercial-vehicle industry [2]. - Jindal Group is also expanding into Europe with a proposed takeover of Thyssenkrupp AG's steel unit [2]. Group 2: Market Confidence and Strategy - There is a growing confidence among Indian companies to engage in international deals, viewing themselves as global players, driven by strong balance sheets and the availability of financing [3][6]. - The management capabilities of Indian firms have improved, allowing them to handle complex transactions and take on more risk [4]. Group 3: Market Dynamics - The buoyant Indian stock market, with the Sensex up about 9% in 2025, has bolstered the financial positions of Indian firms, enabling them to pursue acquisitions in Europe where targets are trading at lower multiples [7]. - The trend of Indian companies acquiring European assets is expected to accelerate if high-profile deals are completed [8]. Group 4: Recent Transactions - Recent acquisitions include Sudarshan Chemical Industries Ltd.'s purchase of German firm Heubach and Wipro Infrastructure Engineering Ltd.'s majority stake in French manufacturer Lauak Group [8]. - RP-Sanjiv Goenka Group acquired Manchester Originals, a cricket team in the UK, showcasing the diverse interests of Indian conglomerates [8]. Group 5: Inbound Interest and IPOs - There is also significant inbound interest in India, with about $15 billion in deals in the financial sector this year, alongside nearly $16 billion raised in initial public offerings in Mumbai [9]. Group 6: Investment Banking Activity - Citigroup Inc. reports that in about 70% of potential sellside transactions in Europe, there is interest from Indian buyers, indicating a busy market for Indian investments [10].

Core Viewpoint - The market often does not replicate previous fluctuations simply, especially on the third occurrence, leading to unexpected outcomes contrary to common expectations [1] Group 1: Market Conditions - The funding environment is balanced and slightly loose, with long-term bond yields rising significantly [3][5] - The central bank conducted a 112 billion yuan reverse repurchase operation, with 544.8 billion yuan of reverse repos maturing today, resulting in a net withdrawal of 432.8 billion yuan [3] - The overnight anonymous quote returned to 1.3%, indicating a volatile upward trend in interest rates [5][6] Group 2: Economic Indicators - July's Consumer Price Index (CPI) was slightly above expectations, while the Producer Price Index (PPI) was slightly below expectations, contributing to strong performances in both the stock and commodity markets [5][6] - The "stock-bond seesaw" effect is evident, with the stock market showing resilience while the bond market faces pressure [6] Group 3: Trading Performance - The 10-year government bond yield opened at 1.6875% and fluctuated, closing at 1.7175%, reflecting a 2.65 basis point increase [6] - The trading volume for R001 was 74,543.21 million yuan, with a slight decrease of 135.63 million yuan, while R007 saw a volume of 6,707.92 million yuan, increasing by 160.03 million yuan [4]

Financial Data and Key Metrics Changes - Total revenue reached approximately €190 million, reflecting a strong performance with a growth of 37% year-over-year, and an organic growth of 9% [4][21] - EBITDA increased to €27.5 million, representing a growth of 57% compared to the same period last year, with an EBITDA margin of 14.6% [4][24] - The gross margin improved from 32.8% in 2024 to 38.2% in the first half of 2025 [22] Business Line Data and Key Metrics Changes - The Smart Solutions division grew by 72%, achieving a top line of €44 million, with an EBITDA margin around 18% [5][6] - Digital Advisory division experienced a growth of 63%, while Software Engineering grew by 22%, mainly due to the integration of the WebGenesis business [6][16] - Overall EBITDA growth was significant across all business lines, particularly in Smart Solutions with a 75% increase [6][21] Market Data and Key Metrics Changes - International revenue accounted for €31 million, representing 16% of total revenue, which is lower than the previous year due to the integration of domestic companies [8] - Strategic areas such as Aerospace and Defense, Banking and Finance, and Public Sector are growing in contribution, while Tech, Industrial, and Automotive sectors are seeing a decrease in their contribution [10] Company Strategy and Development Direction - The company aims to accelerate growth in the Smart Solutions division, which is the most profitable [5] - Continued investment in R&D, totaling €12 million, reflects a 75% increase compared to the same period last year, focusing on innovative technology [7] - The three-year business plan includes a mix of continuity and M&A strategies, targeting a 10% growth rate [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving an average growth of 5% to 6% for the Software Engineering division despite fluctuations in quarterly performance [39] - The outlook for the second half of the year is positive, with expectations to exceed the defined guidance [18] - The company is scouting for additional M&A opportunities to enhance growth [19][20] Other Important Information - The company made a strategic investment in Altilia, focusing on artificial intelligence, with plans to increase stakes in the future [11][12] - The net debt as of June 2025 stood at €112 million, in line with guidance, and below two times the year EBITDA [9][29] Q&A Session Summary Question: What drove the change in trend for the Software Engineering business? - The Software Engineering business is linked to large projects, leading to variable performance. A strong Q2 last year made it difficult to achieve similar results this year, particularly in the telco industry, which is experiencing low investment [37][38] Question: What is the rationale behind the partial exit from Banco del Fucino? - The strategy remains unchanged; however, market conditions necessitated a two-step approach for the sale due to regulatory constraints on shareholding in banking institutions [40][41] Question: What is the expected timing for new M&A deals? - The company plans to make one to two small acquisitions in 2025, with larger deals anticipated in 2026. Current negotiations are in advanced stages for a small acquisition in the U.S. [43][46]

AI Glasses - The AI glasses concept continues to gain traction, with companies like Zhili Fang and Haoshanghao hitting the daily limit up, while Xiechuang Data, Zhongke Lanyun, and Ruixinwei saw daily increases of 5.30%, 5.93%, and 4.97% respectively [1] - Xiaomi announced the launch of its AI glasses on June 26, which follows the mass production of the world's first consumer-grade AI+AR glasses, Rokid Glasses, that received 250,000 global pre-orders [1] - The market is expected to see rapid adoption of AI glasses due to their lightweight design, affordable pricing, and the maturity of required technologies [2] Stablecoins - Stablecoin-related stocks in both AH markets showed strong performance, with OSL Group rising over 16.07% in the H-share market and several A-share companies like Hengsheng Electronics and Xinguodu seeing increases of 7.34% and 14.42% respectively [3] - Guotai Junan International received approval from the Hong Kong Securities and Futures Commission to upgrade its license to provide virtual asset trading services, allowing direct trading of cryptocurrencies and stablecoins [3] - The introduction of stablecoins is seen as a bridge between traditional finance and the crypto asset system, enhancing transaction stability and cross-border payment capabilities [4] Brain-Computer Interfaces - A new national standard for non-invasive medical devices using brain-computer interface technology is being proposed, focusing on performance indicators and testing methods [5] - The technology is expected to revolutionize human-machine interaction, initially focusing on medical rehabilitation and later expanding into education, entertainment, and military applications [5] Drones - Following the implementation of stricter export controls in 2024, prices for drone components exported from China to the U.S. have reportedly tripled in some cases [6] - China's drone industry is recognized for its mature supply chain and competitive advantages, with expectations to transition from a "component supplier" to a "technology standard setter" within 3-5 years [6] Solid-State Batteries - Vivo launched the X Fold5 smartphone featuring the industry's first fourth-generation silicon anode technology, achieving an energy density of 866Wh/L, a 13% increase compared to the previous generation [7] - The new battery technology is expected to penetrate various markets, including consumer electronics and high-end vehicles, as it matures and costs decrease [7]

Core Insights - The issuance of dollar-denominated bonds by governments in Asia and Europe has significantly decreased, with a 19% year-on-year drop to $86.2 billion in the first five months of the year, marking the first decline in three years [1][2] - Global sovereign local currency bond issuance has risen to $326 billion, the highest level in five years, as investors withdraw from U.S. assets due to concerns over tariffs and the stability of U.S. financial dominance [2] Group 1 - The dollar bond issuance from Canada and Saudi Arabia fell by 31% and 29% respectively, amounting to $10.9 billion and $11.9 billion [2] - Israel and Poland also saw declines in dollar bond issuance by 37% and 31%, reaching $4.9 billion and $5.4 billion [2] - The decline in dollar bond issuance is accompanied by a notable increase in local currency bond issuance, driven by easing inflation pressures and lower local interest rates in countries like India, Indonesia, and Thailand [5] Group 2 - Brazil is considering issuing its first sovereign bonds in renminbi following a series of investment agreements and a currency swap deal with China [5] - Saudi Arabia raised €2.25 billion (approximately $2.36 billion) through euro-denominated bonds, including its first green bonds, aligning with its strategy to diversify away from dollar-linked financing [5] - The local currency bond market is expected to mature further, particularly in India, as its bonds are included in global bond indices, potentially expanding the investor base [5]