YB new stock pitches (Fri, Oct 17)

Rocket Doctor AI Inc. (AIDR.CN, US OTC: AIRDF) is a revenue-generating AI healthcare SaaS platform trading at approximately $40 million market cap versus peers valued at $600 million to $3.5 billion, despite generating actual revenue with 89% gross margins and facilitating 700,000+ patient visits through 300+ physicians. The company recently secured a $2 million NIH Phase II SBIR grant validation for its physician-curated Global Library of Medicine covering 1,000+ diseases and 17,000+ symptoms, with $500,000+ going directly to Treatment.com Inc. and the remainder to partner Rush River Research for developing AI-powered family medical history tools. The platform operates across 3 US states and 4 Canadian provinces with contracts covering 30+ million Medicaid/Medicare patients at $18 net per visit, including recent expansions to Maryland Medicaid/Medicare (2.6M covered lives), New York major insurer partnerships, mental health integration, 50 pharmacy locations, and the first municipal contract in Alberta. The stock has doubled from 28¢ to 50¢ in three months and is forming a cup and handle pattern with a 75¢ rim targeting $1.20-$1.50, though risks include execution challenges in scaling across multiple states, well-funded competition targeting Medicaid markets, and broader healthcare AI valuation compression, while the company's revenue generation and government contracts provide downside protection against the speculative nature typical of most penny stocks.

Read the full article here. Read time: 5 min

Embention Sistemas Inteligentes (MLUAV.PA) is a Spanish drone autopilot manufacturer with a €143 million market cap, trading at 30x P/E with exceptional fundamentals including 50% 3-year revenue CAGR, 92% gross margins, 40% operating margins, and 55% ROCE. The company, founded in 2007 by CEO David Benavante who holds 64% of shares, produces autopilots for drones and eVTOLs along with related components, serving over 600 customers including Amazon, Rheinmetall, BAE Systems, and Airbus. Embention has a strategic partnership with Amazon for its Prime Air drone program worth €17 million over three years starting 2024, with Amazon holding an option to acquire up to 27% of shares if orders exceed €30 million. The company achieved significant milestones in 2025 by obtaining POA and APDOA certifications from Spanish and European aviation authorities, becoming the first European drone autopilot company to achieve these, and is pursuing ETSO-C198 certification which would allow off-the-shelf sales as a massive growth catalyst potentially by end-2026. Key risks include extremely low liquidity with only €1,300 daily trading volume due to 7% free float, very limited investor disclosure with no annual reports or earnings calls, potential Amazon partnership setbacks, and drone accident risks that could damage reputation. The company plans medium-term uplisting to Euronext Growth or potential Nasdaq listing, expanded from 114 to over 150 employees, and opened a UAE subsidiary in 2024, with management forecasting continued growth driven by cutting-edge aerospace solutions.

Read the full article here. Read time: 5 min

Shin-Etsu Chemical Co., Ltd. (4063.T), Japan's leading chemical company, dominates three strategic markets with 30.2% operating margins versus industry averages of 15-20%, holding market leadership positions in PVC (through Shintech subsidiary), semiconductor silicon wafers (28-30% global market share via Shin-Etsu Handotai), and photomask substrates. The company reported $12.73 billion in nine-month revenue (+5.8%) with $2.85 billion net profit (+6.4%), guiding for FY2025 revenue of $16.49 billion (+3.5%) and ordinary income of $5.41 billion (+4.2%). Key growth catalysts include the late 2025 launch of advanced lithography materials capacity in Isesaki targeting EUV applications for AI chips (projected $330-$460 million annual revenue at 45%+ margins by 2027), semiconductor market recovery expected by mid-2026 with 15-20% segment growth potential, functional materials mix transition to high-performance products targeting 28-30% margins by 2027, and Shintech capacity expansions reaching full utilization by 2026. The company plans $2.6-$3.3 billion in capex over three years, with 40-45% allocated to electronics materials. Major risks include Chinese overcapacity in commodity PVC and silicone creating persistent pricing pressure, geopolitical semiconductor supply chain restructuring potentially overriding technological advantages, and technology disruption from alternative materials like silicon carbide or gallium nitride. Trading at approximately $32.50 per ADR share (17-18x forward earnings), the stock trades at a discount to semiconductor materials peers (25-30x) despite superior returns, with management projecting operating income growth to $5.6-$5.9 billion by fiscal 2027 versus current $4.85 billion guidance.

Read the full article here. Read time: 11 min