Equity Bottom-Up

• General Dynamics (GD) has reported its financial performance for the fourth quarter and full year of 2024, showcasing a mixed bag of results across its diverse operations.
• On the positive side, the company demonstrated strong revenue growth, with 14.3% increase for the quarter compared to the previous year, leading to full-year revenue growth of 12.9%.
• However, challenges in the Aerospace segment tempered overall performance expectations.

• Logitech recently reported strong financial results for the third quarter of fiscal year 2025, showcasing robust demand across various products and geographies, leading to a rise in their annual outlook.
• The company’s net sales increased by 6% year-over-year, with a notable 8% growth in demand, driven primarily by strategic focuses introduced the previous year.
• One of the key highlights for Logitech was the gaming segment, which saw double-digit growth of 13%, propelled by the launch of 16 new gaming products before the holiday season.

• Delta Air Lines reported a strong performance for the December quarter and full year 2024, highlighted by a record pretax profit of $1.6 billion in the fourth quarter and earnings per share of $1.85, topping their own guidance.
• This positive result was achieved against a backdrop of industry leading operational performance, with Delta achieving the highest system completion factor and on time performance among its peers.
• For the full year 2024, Delta’s operational achievements included 78 “Brand Perfect” days and recognition with Cirium’s Platinum Award for operational excellence for the fourth consecutive year.

• Q424 revenues of $14.3 billion which was $500 million above the guided midpoint, down 7% YoY but up 7.5% QoQ.
• Forecasted Q125 revenues of $12.2 billion at the midpoint, down $500 million YoY and down 15% QoQ
• Transition to EUV abysmally slow, Falcon Shores cancelled, Clearwater Forest delayed, GMs will see some improvement or mixed improvement in 2026. 

• If product sales cannot continue to climb rapidly and dilute the costs, the final profit will gradually fade away. Therefore, Chinese biotech companies need new blockbuster products to drive growth.
• The decline in the number of biotech companies in the future is actually “a supply side reform” that fundamentally reduces market competition, which obviously benefit those first-tier companies.
• The acquisition of Tasly by China Resources Sanjiu Medical & Pharma is still in progress. The deal may not be completed until 25H1 if the approval time is not enough.

• Rubrik reported strong financial performance in its latest quarter, achieving $1 billion in subscription ARR, representing 38% year-over-year growth.
• Net new subscription ARR stood at $83 million, while subscription revenue increased by 55% year-over-year to $221 million.
• The company also recorded free cash flow of $15.6 million, marking an improvement from $3.5 million in the prior year period.

• On 31 January, Samsung Fire & Marine Insurance (000810 KS) announced a comprehensive corporate value up plan.
• The three major areas of focus include K-ICS ratio (220%), ROE targets of 11-13%, and total shareholder returns to 50% by 2028. 
• The company plans to reduce the treasury shares as a percentage of total outstanding shares from 15.9% to 5% by 2028 (10.9% of total outstanding shares over over four years).

• ServiceNow demonstrated strong financial and operational performance throughout the fourth quarter of 2024.
• The company reported a subscription revenue growth of 21% year-over-year, with the remaining performance obligation reaching nearly $23 billion.
• This emphasizes the firm’s ability to capture and sustain customer interest in its services.

• Tesla’s fourth-quarter earnings highlighted a company at the crossroads of transformation and challenge.
• Despite achieving a record market valuation of $1.5 trillion in December, the company’s core automotive business struggled, with an 8% year-over-year revenue decline.
• Demand softened, particularly for the Cybertruck, forcing Tesla to rely on aggressive promotional strategies to sustain sales.

• United Rentals, Inc. reported robust results for the fourth quarter, achieving record revenue, EBITDA, and EPS.
• The company witnessed a significant revenue growth of 9.8% year-over-year, reaching nearly $4.1 billion.
• Rental revenue increased by 9.7% to $3.4 billion, with fleet productivity enhancing by 4.3%.

• Blue Jet Healthcare Ltd (BJHC IN) is a science-led pharmaceutical company that has evolved into a strategic partner for the CDMO of advanced Pharmaceutical Intermediates and APIs.
• Company gave a record breaking Q3FY25 primarily driven by capacity expansion in Contrast media and PI Segment. Strong demand for the cardiovascular product was also witnessed.
• Company commissioned an additional manufacturing block during Q3 FY25 at Ambernath for manufacturing Advance Contrast Media with investment around Rs. 100Mn.

• Market looks happy about Intel 4Q result / 1Q guidance. There’s actually a fait bit of poor news for 2025. But the tone / narrative is a lot better.  
• 2025: Product margins under pressure, Foundry margins better if 18A EUV delivers. Server share loss to be fixed. No GPU. Capex reduced to US$20bn.
• How much do you pay for “we began the process of resizing our expense structure to support more modest long-term growth”. The stock trades at 13x 2025, 11x 2026 EPS. 

• In this insight, we provide the top 10 stocks picks in the Korean stock market for the two weeks starting 3 February.
• The top 10 stock picks include Orion Holdings, OCI Holdings, Hana Tour Service, Hyundai Motor, KT Corp, Samsung F&M Insurance, Korean Air, Hankook T&T, Young Poong, and NICE Info Service.
• Our top 10 Korean stock picks from 17 to 31 January are up on average 2.6%, outperforming KOSPI which is down 0.1% in the same period. 

• Lam Research Corporation reported its earnings for the December 2024 quarter with results largely exceeding guidance midpoints, showcasing strong operational execution and strategic positioning.
• The company reported a revenue of $4.38 billion, an increase of 5% from the previous quarter.
• This growth was driven by a balance of increased spending in the DRAM and NAND segments, despite muted NAND spending levels earlier in the year.

• The Boeing Company’s recent quarterly earnings call revealed a mixed performance, capturing both progress and ongoing challenges.
• Key areas of focus included stabilizing production, managing fixed-price development programs, and cultural transformation, against the backdrop of an industry still in recovery.
• On the commercial aerospace side, Boeing’s production strategy post-IAM strike was highlighted.

• Apple 1Q25 Results — Overall Price-Supportive for Taiwan Supplier Share Prices When the Taiwan Market Re-Opens Monday
• Why Zhen Ding Technology Holding (4958 TT) and Kinsus Interconnect Tech (3189 TT) Could Be in a Favorable Position Relative to Apple’s AI Trajectory
• Increasingly sophisticated Apple products require significantly more complex PCBs & interconnect solutions, especially as advanced packaging has become a key enabler of high-performance computing.

• KPIT Technologies (“KPIT”) reported decent growth despite challenging macroeconomic environment in the automotive OEM segment. Q3FY25 revenue grew 17.4% YoY and 2.0% QoQ in constant currency (CC) terms.
• Led by improved efficiency and revenue mix, EBITDA margin came in stronger than expected at 21.1%. This led KPIT to raise its FY25 EBITDA guidance to 21%+ from 20.5%+.
• Deal engagement has been strong. TCV came in at $236mm vs typical run-rate of $150mm+. Deal pipeline is also healthy and the management is expecting substantial closures by H1FY26.

• Raytheon Technologies Corporation (RTX) concluded its fourth quarter of 2024 with robust financial performance, evidenced by significant growth across several key metrics.
• The company reported adjusted sales of $80.8 billion, marking an 11% organic increase driven by strong performances in commercial original equipment (OE), commercial aftermarket, and defense sales.
• Adjusted earnings per share (EPS) grew 13% to $5.73, and free cash flow amounted to $4.5 billion.

• Sigachi Industries (SIGACHI IN)  has increased MCC capacity to 21,700 MTPA and expects to achieve 80-90% utilization by Q4 FY27 from 50% utilization in Q4FY25.
• Sigachi is increasing its focus on the API segment, with a target of 20-25% revenue contribution in next 2-3 yrs and further expanding to 35-40% of revenue in 3-5 Yrs.
• Sigachi is introducing new product lines including pharmaceutical coatings like PureCoat and UltraMod and plans to commercialize Croscarmellose Sodium (CCS) by FY26 to enhance drug stability and bioavailability.

• Revenue rose to JPY14.0bn (+19.3% YoY), with operating profit margin increasing to 18.1% (+2.0pp YoY).
• Outsourcing and software businesses drove revenue growth, with order backlog in Q2 FY06/25 at JPY4.8bn (+24.0% YoY).
• Consolidated employees increased to 1,567, with substantial profit growth in Corporate Management Solutions Business in 1H FY06/25.

• PC Monitor: Snapdragon’s Surge, AMD’s Gains, Intel’s Test; Long Asus & Dell
• Memory Monitor: Is DeepSeek a Problem for SK Hynix & Micron’s HBM DRAM Growth? 
• TSMC (2330.TT; TSM.US): Earthquake Impact Limited; Setting Newest Production Line Not Viable in US. 

• In recent weeks, Meta stock has mostly been one-way street: up! That continued to be the case after-hours post 4Q’24 earnings.
• Here are my highlights from today’s call. Daily Active People (DAP) across its Family of Apps (FOA) accelerated to 60 mn QoQ in 4Q’24.
• It’s kind of mind boggling that Meta added 1 Billion DAP since 1Q’20.

• ASML reported Q424 revenues of €9.3 billion, marginally above the high end of the guided range, up 24% QoQ and up 28.5% YoY.
• Full year 2024 revenue amounted to €28.3 billion, up 2.7% YoY and a modest improvement on the previously forecasted zero growth
• Guided full year 2025 revenues to be in the $30-$35 billion range, representing a 15% YoY increase at the midpoint.

• API Group, a provider of life, safety, and specialty services to buildings, has seen significant growth under CEO Ross Becker and with involvement from investor Sir Martin Franklin.
• Started as a small plumbing company in the 1960s, now a global leader in fire protection, security, and building services
• Shifted from one-off construction projects to recurring revenue model, with over 55% of revenue now recurring

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• Takeda Pharmaceutical (4502 JP) reported better-than-expected performance in Q3FY25, with 3% revenue growth to ¥1,144B, driven by continued strong momentum from Growth and Launch Products. All key parameters beat estimates.
• Takeda has upgraded its full year outlook for growth, reflecting strong year-to-date product performance and OPEX efficiencies, as well as revised foreign exchange assumptions. Takeda has also announced ¥100B buyback.
• Continued strong performance of its Growth and Launch product portfolio, ripe late-stage pipeline, and expected margin improvement from FY26 envisage long-term growth prospect of the company.  

• AT&T’s latest financial performance in the fourth quarter of 2024 shows a balanced overview of strengths and challenges that shape its investment profile.
• Positively, the company has demonstrated solid growth in its core operations, particularly in the Mobility and Consumer Wireline segments.
• Postpaid phone net additions totaled approximately 1.7 million with a service revenue growth of 3.5% for Mobility, contributing to AT&T likely leading the industry in postpaid phone churn for most of the past sixteen quarters.

• Recent U.S. Market Weakness Appears to Have Been More Focused on Falling Sentiment for Server Businesses, Not PCs
• CES 2025 Showed Qualcomm Chips Gaining Momentum in PCs, While AMD Continued Aggressive Competition — Intel Under Pressure
• PC Maker Universe to Experience Decent Revenue Growth in 2025E — Structural Long Asustek & Dell

• Naver’s CHZZK has been increasing its market share in the Korean live game streaming sector. This improving momentum is likely to continue to positively impact Naver’s share price. 
• CHZZK was the top ranking live streaming platform in Korea in December 2024 with about 2.5 million MAU.
• Naver is currently trading at EV/EBITDA of 11.4x and P/E of 18.3x, which are 50% and 51% lower respectively than its historical average valuation multiples from 2020 to 2023.

• Krishca Strapping Solutions (KRISHCA IN) is India’s first “Lead-Free” and eco-friendly production line for the heat treatment of steel strapping.
• The company is aggressively pursuing growth, aiming for a 25% revenue increase in the current financial year and EBITDA margin is anticipated to stay between 15% and 20%
• The company is investing in a new special steel production plant in Chennai and launching subsidiaries in the UAE and Singapore to tap into new markets

• Nucor Corporation has delivered a mixed performance during its fourth quarter of 2024, marked by safety achievements and strategic growth investments alongside certain operational challenges.
• On the positive front, Nucor reported its safest year in history with a notable reduction in workplace injuries, reflecting a strong corporate culture focusing on safety.
• Financially, the company achieved earnings of $1.22 per share for the fourth quarter, contributing to an annual total of $8.46 per share.

• Yesterday, Daihatsu Diesel Mfg (6023 JP) announced that it would buy back shares in a Tender Offer and that its controlling “parent” would also sell shares to a private company.
• The accretion is significant, and the shareholder structure changes significantly. It is not quite an Exedy-like situation though. The register changes but it doesn’t clear. 
• But the backdrop is considerably different than the MTMP, and that means this smallcap is worth a closer look.

• Sigma Healthcare (SIG AU) announced that more than 99% of the shareholders cast vote in favor of the merger with CWG. The merger now remains subject to court approval.
• The court hearing is scheduled on February 3, 2025. If the Court approves the merger, it is expected that implementation of the merger scheme will occur on February 12, 2025.
• CWG continued healthy performance, with double-digit like-for-like retail network sales growth and 400bps EBIT margin expansion in H1FY25. We are bullish on the long-term growth prospect of the merged entity.

• CyberAgent Inc (4751 JP) reported 1QFY09/2025 results today. 1Q revenues beat consensus but reported OP fell below consensus due to weak gaming margins.
• The key highlight of the quarter was the strong results of the Media business whose revenues saw strong growth with strengthened profitability.
• Though game earnings were slightly weak during 1Q, we would not be too worried as app analysis data reveals that the segment is off to a strong start in 2QFY09/2025.

• Margin recovery drives stock higher – Operating profit beat estimates, margins rebounded to 13.6%, and forex gains provided a boost despite weak sales.
• European rebound offers upside – Makita, with 20% market share, is set to benefit from a forecasted 2025 construction sector recovery after two years of contraction.
• Valuation remains attractive – With improving ROIC, inventory normalisation, and steady growth prospects, a DCF model suggests an 18% upside for the stock.

• Revenue increased by 73.9% YoY to JPY25.4bn, with operating profit rising 149.6% YoY to JPY11.2bn.
• Capital gains reached JPY10.9bn, with JPY7.6bn from IPO-related share sales and JPY3.4bn from unlisted shares.
• Total investment executed in cumulative Q3 FY03/25 was JPY30.6bn, with JPY14.5bn for domestic VC investments.

• Halliburton’s Q4 revenue fell by 2.3% YoY and missed estimates by 0.4% due to weakness in North America. However, its EPS beat estimates by 0.7%.
• Completion & Production revenue fell 4.2% YoY due to reduced activity in North and Latin America. Drilling & Evaluation revenue grew 0.4% YoY driven by growth in the Middle East.
• In Q4, Halliburton repurchased USD 309 million in stock and generated USD 1.1 billion in free cash flow. Full-year repurchases totalled USD 1.6 billion.

• The company has had good 2024 absolute and relative to Topix performance.
• Will Jafco continue this winning streak into 2025 and beyond?
• Results for the quarter ending December 2024 are encouraging with exit multiples increasing

• Krung Thai remains our core value pick among the Thai banks driving its solid post-provision profitability higher, delivering double-digit ROE, a sound balance sheet and attractive PBV and PE ratios
• Krung Thai has the highest core capital ratios as well as delivering the best ROE of the peer group, along with one of the best efficiency ratios versus its peers
• Its share price performance has been strong, yet we believe that this positive momentum should continue as Krung Thai still has scope to narrow the valuation gap with SCBx

• As we hit Chinese New Year break,  we want to examine if Hynix’s earnings and investor call met investor expectations
• 6 key questions going in and where we are post SK Hynix (000660 KS) reporting and before Samsung Electronics (005930 KS) reports early February
• The consensus is that the key questions were not answered.  Well, not all answered and some remains to be seen. 

• Chevron to report its Q4 earnings on 31/Jan, with revenue and EPS projected to fall sequentially and annually. For 2024 also, revenue and EPS are expected to drop.
• As of 29/Jan, Chevron’s implied volatility (IV) stands at 21.12%, with an IV rank of 43.95% and an IV percentile of 75%.
• Chevron’s OI by strike for the 31/ Jan expiry shows calls concentrated at strikes 162.5, 165, and 167.5, while puts are prominent at strikes of 150, 152.5, and 155.

• DeepSeek has been the biggest story in the global markets in the past couple of weeks.
• In this insight, we discuss how the rise of DeepSeek could impact the share prices of the major AI related companies in Korea including SK Hynix (000660 KS). 
• The top five Korean companies that could be negatively impacted by the rise of DeepSeek include SK Hynix, Hanmi Semiconductor, SK Square, HD Hyundai Electric, and LS Electric. 

• SK Hynix Expects 100% HBM Revenue Growth in 2025E After a Massive 2024 — Which Means Traditional DRAM Doesn’t Matter as Much Anymore
• DeepSeek Market Fears — A Problem for HBM & Enterprise SSD Memory?
• AI Industry Opportunities Are Not a Fixed Size Pie — Will DeepSeek Impact HBM DRAM TAM? Why We Don’t Think So

• TSMC: 10.8% Premium; Taiwanese Investors Likely to Be Less Shocked by DeepSeek News?
• UMC: -7.3% Discount; The Latest Extreme Discount Cannot Be Sustained
• ASE: -10.2% Discount; This Extreme Discount Also Cannot Be Sustained

• Bund Center Investment (BCI) is a diversified investment vehicle with two commercial real estate assets: the landmark Westin Bund Center Hotel, and its premium office space, Bund Center Office Tower in Shanghai.
• BCI operates under two business segments: Hotel Operations and Property Leasing.
• Despite short-term hurdles, long-term economic growth in China provides a supportive backdrop.

• The HSTECH index is trading higher on higher breadth and momentum in January, up 6% so far.  Analysts project an upside of 23% over 12 months.
• China’s semiconductor sector is advancing this year from AI enthusiasm and accelerated localization in the chip industry.  Semiconductor Manufacturing International Corp (SMIC) (981 HK) shares have benefited from this trend.
• Sunny Optical Technology Group (2382 HK) benefits from China’s announcement that it will subsidize more consumer products, including smartphones and new vehicles.

• TSMC hit a record high average fund allocation of 9.07% at the end of last year, yet EM funds switched to a sizeable underweight of -1.47% throughout the year.
• Active UCITS funds become forced sellers as weights hit 10%, with non-UCITS selling in to strength as weights rise on strong performance.
• EM Value funds maintain an overweight in Alibaba, the only Style group to do so. Alibaba is now the most widely held stock for Value funds alongside TSMC and Samsung.

• Azeus Systems Holdings Ltd. (SGX: AZEUS SP) is a leading global IT solutions provider with over 30 years of experience, specializing in board governance and digital transformation solutions. The company’s flagship product, Convene, serves boardrooms and executive teams across more than 100 countries, with additional offerings like Convene AGM, Convene Records, and Convene ESG, tailored to meet specific enterprise needs.
• Two Business Segments: Azeus Products and IT Services. These segments cater to a diverse clientele with tailored solutions that address specific operational and strategic needs of Azeus’s clients. Azeus Products account for the lion’s share of revenue, at 81% as shown below.
• Convene Flagship Product: Convene is a leading board governance solution for boardrooms and executives, offering secure document sharing, real-time collaboration, voting tools, analytics, and workflow automation to streamline decision-making. Its user-friendly interface and mobile compatibility make it popular among enterprises and governments. Azeus also offers additional Convene-branded products for specific use cases.

• Frontier Springs (FS IN) is poised for growth, driven by India’s robust railway sector expansion and increased demand for LHB coaches which is reflected in their expanding margins and profitability.  
• Company is aiming for 250Cr by FY25 and 500Cr by FY27 with sustainable margins for 18-20%.
• Company is completely booked for next 6-8 months and air spring division is booked completely for next year. Also looking for acquisition in the segment. 

• NVIDIA, the global leader in AI hardware, has recently faced unprecedented turbulence in the market, shedding nearly $600 billion in market capitalization in a single day—an event that has sent shockwaves through the tech and investment communities.
• The catalyst for this dramatic drop?
• DeepSeek, a relatively new Chinese AI startup that has stunned the industry by developing a highly efficient and cost-effective AI model, DeepSeek R1.

• Hyphens Pharma (HYP SP EQUITY) is Singapore’s leading specialty pharmaceutical and consumer healthcare group, leveraging on its diverse footprints in ASEAN countries. Its core business lies in three segments: Specialty Pharma Principals, Proprietary Brands, and Medical Hypermart and Digital.
• Based on its scalable business model, direct access to the five countries in the southeast Asia region enabling it to capture health expenditure growth in ASEAN countries, sustainable growth from both in-house product innovation and in-licensing cooperation, as well as realization of DocMed’s potential when rolling out the digital platform to other ASEAN markets, Hyphens Pharma will demonstrate sustainable growth momentum and optimistic investment value in the future.
• Revenue in 2024 full year is expected to show a strong rebound compared to 2023.

• This reports addresses the alarmist wrong conclusions over DeepSeek, especially over GPU usage and costs
• This said, DeepSeek shows that Foundational models are commoditizing. Applications will be more resilient and profitable, ie customized with attached services
• We are just at the beginning of the AI revolution with language models. Physical models are next and massive Application deployment.  

• Gen Z consumers prioritize price over brand loyalty, affecting restaurateurs’ pricing strategies.
• Increasing platform dominance and discounting culture hinder profitability for restaurants in the competitive food delivery landscape.
• Food delivery companies are pivoting from mere consumer tech-enabled logistics businesses to data-driven market-dominant behemoths. 

• Consumers accused that Alibaba and JD.com took national consumption subsidies.
• Kuaishou’s new year sales GMV (Gross Merchandise Value) increased by 71%.
• Honor Smartphone CEO resigned largely due to the IPO plan.

• Consolidated net sales slipped 0.4% to ¥197 billion, while operating income slipped 14.6%, hitting ¥34.9 billion
• The yen’s Q3 weakness erased ¥11 billion in unrealised inventory profits, dragging reported operating profit below expectations
• Recovery in order book is key positive. However, given the stock’s outperformance over the past 3 months, there is less upside. 

• Cosco Holdings’ stakes in Puregold Price Club and The Keepers Holding is worth US$1.1 billion, which is 176% higher than Cosco’s current market cap.
• Cosco Capital’s dividend yield and dividend payout have been increasing nicely in the past several years from 1.5% in 2021 to 3% in 2022 and 8.8% in 2023.
• We found Cosco Capital using Smartkarma’s Smartscore Screener. We used three criteria including market cap, dividend score of 4 or more, and total SmartScore of 4 or more.

• The Lodha brothers, Abhishek and Abhinandan, are locked in a legal battle over the use of the “Lodha” brand, despite a 2017 family settlement agreement.
• Macrotech Developer is seeking a perpetual injunction against HoABL to cease the use of the “Lodha” brand in any form and is demanding INR5,000 crore in damages. 
• The Bombay High Court on January 21 said that it would hear on January 27 the application filed by Abhishek Lodha-promoted Macrotech Developers Ltd 

• Taiwan Semiconductor Manufacturing Company (TSMC) closed 2024 on a high note, driven by robust demand for AI-related chips and its cutting-edge 3-nanometer and 5-nanometer technology nodes.
• The world’s largest contract chipmaker reported a record fourth-quarter net profit of NT$374.68 billion (US$11.37 billion), marking a 57% year-over-year increase, alongside a 39% revenue jump to NT$868.46 billion.
• The company’s gross margin rose to 59%, supported by high demand for advanced nodes despite challenges like ramp-up costs for its overseas facilities in the U.S. and Japan.

• In the Company’s stated goal aiming to become the No.1 cloud integrator in Japan, the importance of its close relationship with Microsoft cannot be overstated.
• JBS became certified as a Microsoft Partner in 1995, and it was awarded Microsoft Japan Partner of the Year for the first time in 2007.
• JBS has been recognized as Microsoft Japan Partner of the Year for 12 consecutive years from 2013 – 2024, reflecting its business strategy to focus on cloud migration/integration during that period. 

• Fastenal Company recently held its 2024 annual and fourth-quarter earnings call, providing insights into its financial and operational performance.
• The company reported a modest fourth-quarter sales growth of 3.7% (2.1% on a daily sales rate), indicating a stabilization in sales amidst a challenging industrial economy.
• Although sales grew slightly, the company did not meet its own expectations, with earnings per share (EPS) decreasing by 2% to $0.46.

• The CSX Corporation’s earnings reveal a complex landscape influenced by numerous external factors, while also showcasing internal resilience and growth initiatives.
• For the fiscal year 2024, CSX faced a multitude of challenges, including adverse weather events like hurricanes, weaker commodity prices, and infrastructure disruptions, notably the collapse of the Francis Scott Bridge.
• These external pressures led to fluctuations in financial performance, especially in specific segments like coal and intermodal transportation.

• More than 40 potential turnaround stocks will report Q3 results in the coming weeks. 
• The average spread between the lowest and highest street estimate for the stocks on our target list is a gaping 45%. This doesn’t mean what most people think it means.
• Rohm, Taiyo Yuden, Yamato, Hamamatsu, JFE, Tsuruha look nice, but we pass on Shiseido and Mazda.

• Smartphone 2024 small growth about +5% YoY. PC 2024 small unit growth +4%. Don’t expect much better in 2025 but the Silicon content will increase, both for processor and DRAM.
• Lots of cuts in 2025 Semiconductor Capex. TSMC is up but Samsung, UMC, Intel down. Japan Semi Equipment association has revised down 2025 growth from 10% to 5%.
• Cloud Capex booming. Microsoft announced US$80bn in FY25. Meta at US$60-65bn. TSMC to increase 5-3nm wafer price by 5-10%. The Ai segment of semiconductors is doing extremely well

• Bank Central Asia booked a solid finish to 2024, with strong loan growth across the board driven by  corporate and SMEs leading, whilst its CASA continued to grow, protecting NIMs.
• The bank continue to cement its position as Indonesia’s leading transactional bank with +21% growth in 2024 to a record 36bn transactions, with its mobile banking leading the way. 
• BCA continues to grow channels inclusing  branches and ATMS to supplement its mobile banking growth. Loan growth may slow slightly this year but BCA stands out from peers on funding.

• China International Marine Cntnrs Gp (2039 HK)‘s positive profit alert suggested a very solid performance for Singamas Container Holdings (716 HK) in 4Q24. 
• Annualising Singamas’ 1H24 earnings for the full year will mean a 78% profit surge in 2H24, but this is still conservative – CIMC’s 2H24 profit leaped 93x YoY.
• Trading on 6x PER, versus CIMC’s 10.3x, the stock is cheap. Net cash equals 86% of market capitalisation, potentially providing a yield higher than the 8.8% currently projected.

• China National Building Material (3323 HK) published the H-share offer document and if everything is smooth, the payment will be made on 14 Mar 2025. 
• Its two subsidiaries forecast poor profit/losses for FY24, suggesting a tough operating environment. The buyback valuation remains attractive relative to peer multiples.
• For non-holders, at the current price of HK$3.59, we do not think the safety margin is good enough, assuming that most existing shareholders will accept and tender.

• Outlook improving with rising demand for energy storage systems and near-line HDDs and water cooling modules for AI servers.
• 3Q results point to FY sales above and profits in line with management’s guidance. Proceeding toward acquisition of Makino Milling next fiscal year.
• At 17.5x projected earnings and 10x cash flow, the shares are at the bottom of their 10-year valuation range. Buy for the medium- to long term.

• Due to disappointing performance in 24Q1-Q3, both revenue and net profit attributable to the parent company in 2024 could face negative growth, but 2025 is expected to have positive growth.
• As pharmaceutical distribution business can just maintain stable but medical device distribution business and retail pharmacies cannot contribute high growth, the overall performance of Sinopharm has lost growth momentum.
• Due to longer payment cycles from hospitals and its business characteristics, Sinopharm is facing significant demands for working capital. Insufficient cash flow makes it difficult to increase the dividend rate.  

• Kalyan Jewellers (KALYANKJ IN), one of the largest Indian jewellery player, has been under the limelight for various allegations and misconducts, including possibility of inventory overstatement.
• In this insight, we try to look at the inventory from the forensic lens and uncover the disparity in accounting.
• We also note that operating cash flows are boosted by movement in metal loans while company also has several RPT with promoters, especially on the purchases side. 

• There have been quite a few M&As in the field of TCM, with a clear trend of SOEs taking over TCM enterprises due to strategically significant and advantageous integration.
• Whether a drug can be approved does not depend on whether it has entered Phase II/III trials. The areas with clearly unmet medical needs often indicate good investment opportunities.
• The privatization of Henlius failed. Lin Lijun’s dissenting vote was based on a deliberate decision. We are optimistic about the outlook of Henlius due to its strong fundamentals and internationalization. 

• CACI International reported strong results for the second quarter of its fiscal year 2025, highlighted by a robust revenue growth of 14.5% and an EBITDA margin of 11.1%.
• The company secured $1.2 billion in new business awards during the quarter and reported a trailing 12-month book-to-bill ratio of 1.7x, indicating a solid demand for its services.
• This strong performance has prompted CACI to raise its full-year guidance, projecting revenue between $8.45 billion and $8.65 billion, and adjusted earnings per share ranging from $23.87 to $24.76.

• Netflix Inc. continues to demonstrate strong performance in the streaming industry, underpinned by significant subscriber growth and robust financial metrics.
• In the fourth quarter of 2024, Netflix reported an unprecedented net addition of 19 million subscribers, culminating in a total of 41 million new members for the year.
• This surge not only surpassed analyst expectations but also propelled the stock to a record high of $999, reflecting investor confidence in the company’s growth trajectory.

• Alcoa Corporation’s fourth quarter and full-year 2024 earnings report presents a multifaceted picture of the company’s performance and future outlook, highlighting both positive achievements and areas of concern.
• In 2024, Alcoa achieved significant operational and financial milestones.
• The company witnessed improved safety metrics and recorded no fatalities or life-altering injuries, which underscores its commitment to creating a safer work environment.

• Steel Dynamics (STLD) navigated a challenging market environment in 2024, achieving solid financial results while continuing strategic growth initiatives.
• The company reported second-highest annual steel shipments of 12.7 million tons, and cash from operations stood at $1.8 billion, supported by adjusted EBITDA of $2.5 billion.
• Net income for 2024 was recorded at $1.5 billion, reflecting a diluted share value of $9.84, while the fourth quarter net income was $207 million, or $1.36 per diluted share.

• Textron’s latest financial performance highlighted a mix of achievements and challenges across its diverse business segments.
• The company’s Q4 2024 revenues were $3.6 billion, a decrease from $3.9 billion in the previous year.
• Segment profit also saw a decline to $283 million, down $101 million from the prior year’s same quarter.

• United Airlines Holdings’ latest earnings call for the fourth quarter and fiscal year 2024 highlights a robust performance that illustrates both advancements and challenges within the company.
• Reflecting on the year, United Airlines demonstrated strong financial outcomes primarily driven by strategic operational improvements and a favorable market environment.
• In 2024, United Airlines achieved a record earnings per share of $10.61, surpassing the midpoint of their initial guidance.

• Amphenol Corporation concluded the fourth quarter of 2024 on a strong note, reflecting robust financial performance across most of its business segments.
• The company’s quarterly sales reached a record $4.318 billion, a 30% increase in both U.S. dollars and local currencies and a 20% organic growth compared to the same period in 2023.
• This growth was consistent across all served markets, with the company achieving significant milestones in both quarterly and full-year metrics.

• D.R. Horton, Inc., “America’s Builder,” reported its financial performance for the first quarter of fiscal 2025 with results that underscore both strengths and challenges facing the company.
• Earnings came in at $2.61 per diluted share, a decrease from the $2.82 reported in the prior year.
• Despite the dip, the company generated consolidated revenues of $7.6 billion with consolidated pretax income of $1.1 billion, reflecting a pretax profit margin of 14.6%.

• Samsung Life Insurance (032830 KS) is considering on a special measure of classifying its stake in Samsung Electronics (005930 KS) as a long-term holding stock of up to 10 years.
• If Samsung Life Insurance’s stake in Samsung Electronics is classified as a long-term holding, Samsung Life Insurance cannot sell Samsung Electronics stocks for at least 5 years.
• There is an increasing probability that if Samsung Life Insurance classifies its stake in Samsung Electronics as a long-term holding, the current ownership stake structure involving Samsung Group remains intact.

• President Donald Trump announced the Stargate Project, a new company which intends to invest $500 billion over four years building new AI infrastructure for OpenAI in the United States.
• Elon Musk is miffed, Microsoft says they “approved” the project and have a new Right of First Refusal agreement in place with OpenAI. 
• Stargate is exclusively for OpenAI and the press release states that its mission is to provide a strategic capability to protect the national security of America and its allies.

• We expect JD.com C4Q24 revenue/non-GAAP NI to be RMB337bn/9.7bn, 1.6%/6.5% above consensus, benefiting from trade-in subsidies and logistics;
• With 2025 having four quarters of trade-in subsidy vs. 2024’s one quarter and smartphone’s participation, JD.com is on solid growth footing in our universe. 
• We raised JD.com’s TP from US$50 to US$ 52 TP and maintain BUY rating.

• Greatland Gold is transitioning from a developer to a producer with the acquisition of Telfer and Haveron assets from Newmont.
• In just 27 days of operation, they produced 29.9 thousand ounces of gold and 1.2 thousand tonnes of copper, exceeding expectations.
• The company has a healthy balance sheet with 145 million in cash, no debt, and plans for mine life extensions at Telfer, including stage seven and eight cutbacks.

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• BoJ raised rates to 0.5% at its January policy meeting and BoJ Governor Kazuo Ueda hinted at more rate hikes; BoJ’s new Outlook Report forecasts higher core inflation in 2025
• We reiterate our core recommendations Resona and Mizuho for their leverage to higher interest rates, their low LDRs, their high levels of cash at the BoJ and their modest valuation
• We also keep our buys on Concordia and Shizuoka, for their leverage to higher interest rates and LDRs below 90%, along with their attractive valuations highlighted by low PEGs

• ExxonMobil’s Q4 revenue is expected to rise 2.5% YoY while its EPS is anticipated to fall 36.3%. Annual revenue and EPS are expected to fall by 1.9% YoY and 18.1%.
• Exxon expects Q4 2024 upstream earnings to drop USD 500–900 million QoQ due to lower crude prices, with refining margins further reducing earnings by USD 300–700 million.
• ExxonMobil plans to invest up to USD 30 billion in low-emission projects by 2030, with its Low Carbon Solutions business expected to contribute an additional USD 2 billion in earnings.

• HTC and VIA are focusing on niche markets and expanding technological capabilities to stay relevant, while Japanese toolmakers turn to AI amid China market uncertainty.
• Nvidia CEO highlights strategic partnership with China’s robotics unicorns, as Acer expands into lifestyle products with Acerpure line.
• Singapore and Malaysia remain optimistic despite US AI chip restrictions, while India’s local EMS and semiconductor industries show growth in the technology sector.

• Dr. Reddy’s Laboratories (DRRD IN) reported Q3FY25 US business revenue of INR33.8B, up 1% YoY, mainly dragged by lower contribution from Lenalidomide. Q3FY25 EBITDA margin deteriorated to 27.5% (Q3FY24: 29.3%).
• Limited growth catalysts remain major overhang. No near-term key launches lined-up to fill the void created by Lenalidomide. Moreover, paltry new launches in the U.S. entail limited revenue visibility.
• Lack of near-term catalyst and bleak growth outlook justify cheaper valuation of Dr. Reddy’s. We do not consider Dr. Reddy’s as value buying opportunity and remain bearish on the name.

• Goldman Sachs’ GCI enters partnership with Asia Pacific Land in Japan for data center venture, expanding its reach in Asia.
• CPPIB and MGRV collaborate on $350M venture in Korean rental housing, aiming to capture opportunities in the real estate market.
• S&P forecasts rebound in China’s property market, driven by increase in secondary sales, indicating positive growth.

• BLND’s stock price has decreased, resembling CVNA’s past struggles
• BLND has been restructuring its cost base and balance sheet to prepare for future growth
• The company, led by a young CEO, is poised for potential recovery and positive earnings revisions, drawing parallels to CVNA’s path to success

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• SK hynix derived ~25-30% of revenues from AI in 2024 (HBM, LP-DDR, eSSD). AI revenues will double in 2025. SK hynix’s lead, both roadmap, manufacturing, qualifications extends to 2026.
• AI high growth also allows SK hynix to lower its exposure to commodity PC, Mobile, consumer segments. Hence, margins likely continue to increase in 2025-26.
• Sk hynix’s lead over Samsung is sustainable for at least 2025-26.  AI-related ASP / margins aren’t cyclical, unlike commodity memory. The stock trades at a miserable 6x 2025 EPS.

• Q3 net sales reached ¥652,153 million, up 1.0% quarter-on-quarter, driven by strong demand for power generators and battery energy storage systems. Operating profit of ¥54,536 million (-10.1% QoQ) missed expectations.
• There has been a notable vibe-shift since Kishida took over as CEO – more focus on operational improvements and hopefully margin accretion.
• Strategic M&A remains a driver and the Makino Milling deal makes sense. At 14x EV / EBIT, the stock should be on the radar of value or GARP investors

• Evo Group cash flow was around 165 million
• Paladin had a 12-day shutdown in November, impacting production
• Water challenges and stockpile grade affecting Paladin’s guidance and operations

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Kaspi is a leading financial technology company in Kazakhstan
• Offers seamless ecosystem of payments, e-commerce, and financial services
• CEO and co-founder Mikhail Lamsada transformed Kaspi into a dominant platform

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Chiba Bank shows good gains in net interest income through 1H25 YoY
• There should be more of this with rising BOJ rates during 2H25.
• Flow through to net profit can be strong, given credit metrics.

• Hogy Medical (3593 JP) reported flat sales of ¥30B in 9MFY25. Sales of surgical kit products rose 3.2%, to ¥20B, of which Premium Kit sales climbed 7.8%, to ¥13.2B.
• Higher costs dented operating margin by 40 bps while net profit rose 5% YoY to ¥2.7B due to an extraordinary gain from sale of investment.
• The company reiterated guidance for FY25 of a rise in sales of 5% to ¥40.9B, with profits also witnessing double digit growth.

• Schlumberger’s Q4 revenue grew 3.3% YoY and beat estimates by 1.1%, while its net profit fell by 1.6% YoY but its EPS exceeded estimates by 2.5%.
• In fiscal 2024, SLB’s revenue rose 9.5% YoY, with net profit up 6.1%. Full-year revenue and EPS exceeded estimates by 0.2% and 0.1%, respectively.
• SLB reported USD 850 million in 2024 revenue from non-oil and gas operations and expects growth from these segments to outpace core business growth in 2025.

• TMDX is a high-growth med-tech company specializing in organ transplant therapy
• Despite expensive traditional valuation metrics, TMDX offers a compelling investment opportunity
• Company recently became GAAP profitable and free cash flow positive, indicating a bright future ahead

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We are gradually building a high-conviction coverage of ideas for the mid and small-caps in the Philippines.
• We set criteria for high ROCE, reasonable growth (10-15% YoY), strong balance sheets, and reasonable capital allocation (dividend yields), all ingredients for being multi-baggers.
• We preview earnings for our top picks: DigiPlus Interactive (PLUS PM), Ginebra San Miguel (GSMI PM), The Keepers Holdings (KEEPR PM), and the Philippine Stock Exchange (PSE PM) 

• Scape Australia is investing in student housing by launching a $3.8 billion fund to transform the sector.
• Indian company CtrlS is expanding their data center portfolio by building a fourth facility in Hyderabad.
• Despite a Q4 slump, Singapore’s real estate investment increased by 35% in 2024, according to Savills.