Equity Bottom-Up

• Average EM fund weights and active fund ownership hits record highs in TSMC
• However, investor caution is starting to surface, with 13.4% of funds shifting to underweight  in the last six months, driving the net underweight to a 15-year low of -1.21%.
• Net outflows of $3 billion over the past six months, led by Invesco, JP Morgan, and MFS, and with four times more sellers than buyers.

• Deepak Fertilisers & Petro (DFPC IN) commissioned 500KT of ammonia plant that will remove their dependence on import of critical raw material.
• DFPCL’s TAN capacity stands at 629 KTPA, with plans to increase it to 1,000 KTPA by FY26 through a new facility in Gopalpur, Odisha.
• Deepak Fertilisers & Petro (DFPC IN) is about to complete its restructuring by creating a separate subsidiary for mining chemicals, which in future they may plan to list separately. 

• Mitchell discusses the success and potential of Crocs, noting its growth and potential for continued success
• Andrew asks if Crocs is a fad or a sustainable business, with Mitchell emphasizing the brand’s importance and continued innovation
• Mitchell highlights Crocs’ success during the pandemic and discusses potential growth strategies for the future, including the importance of jibbets.

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• Enfusion reported its second quarter 2024 earnings with results aligning closely with the company’s prior guidance and consistent performance expectations in the medium term.
• The company posted $49.5 million in revenue, marking a 16% year-over-year growth.
• The adjusted EBITDA came in at $10.1 million, translating to a 20.5% margin.

• Lenovo commits $1B to AI advancements, strengthens F1 collaboration, showcasing innovation in technology sector.
• Garmin experiences growth in SEA sales for smart wearables, indicating a maturing market and strong consumer demand.
• Taiwan’s Transcom gains from global surge in military spending, develops world’s first open-source 6G core network, while Stellantis partners Maserati with China’s Chery amidst struggles in German automotive industry.

• Green Cross (006280 KS) has gained access to 80% of privately insured members in the U.S. for blood product Alyglo, which has been included in formularies of three major insurers.
• Green Cross targets to generate $50M revenue from Alyglo this year. The target seems to be conservative. The company further aims to sustain annual growth of 50%+, which is achievable.
• The company reported sequential improvement in 2Q24, with 17% QoQ revenue growth and significant improvement in gross margin. Revenue growth of 7–8% is expected during 2024–2026.

Boku reported 24% y-o-y revenue growth in H124, with both digital wallet/account-to-account (A2A) payments and direct carrier billing (DCB) payments growing at double-digit rates. Adjusted EBITDA grew 18% y-o-y with a margin of 30.1%. With ambitions to become the best localised payment partner for global commerce, Boku continues to invest in enhancing its product portfolio and strengthening its compliance and treasury functions. A pipeline of new digital wallet/A2A launches for major merchants and seasonal factors support continued strong growth in H224 and 2025. With FY24 outlook maintained, our revenue and adjusted EBITDA forecasts are unchanged.

• Taiwan Veldona human study to start in Sjogren’s.
• Ainos will initiate a Veldona clinical study in Taiwan for primary Sjogren’s syndrome in December 2024.
• This follows the announcement of an oral warts in HIV+ clinical study planned for November 2024. 

• We are reiterating our Buy rating, $29 price target and projections after reviewing Guess?
• stores in London.
• As we near the peak Fall season, Guess?

International Public Partnerships’ (INPP’s) portfolio continues to deliver consistent and predictable returns for investors, while providing environmental and social benefits for the individuals and communities that are served by its assets. INPP shares offer an attractive yield and the DPS is now in its 17th successive year of growth, with visibility for at least another 20 years. Continuing efforts to narrow the discount to NAV have gained traction, with both realisations and the share repurchase programme stepped up. However, discounts are sector-wide and a greater appreciation of the quality of INPP’s cash flows, a decline in interest rates and the prospects for accretive reinvestment may prove more potent factors in a re-rating.

• In Q4FY24, Globus Spirits (GBSL IN) changed its raw material from rice to maize to improve the margin and stability in margins.
• Globus Spirits (GBSL IN) increased its capacity in Q4 recently 120KLPD, 60 each in Jharkhand and West Bengal.
• Recently, the government also removed the ban on using FCI grain and sugarcane for Ethanol production.

• The conglomerate sector continues to show momentum in Hong Kong while the materials and energy sectors lag
• Weibo (9898 HK)Weibo Corp (WB US) was rated a BUY as valuations and potential catalysts from parent Alibaba Group Holding (9988 HK) could support a higher stock price.
• China East Education (667 HK) was upgraded to BUY with higher higher price target due to profit increase. Dongfang Electric (1072 HK) was initiated with a BUY with strong upside.

• Uniqlo’s European arm is on a roll, with more stores, higher sales and a loyal fan base. 35% of customers were under 29 last year up from 16% in 2019.
• Uniqlo is also doing better at home but it needs the boost from newer markets given concerns over growth in China.
• And it is far too early to know whether GU’s formal launch in the US will pay off but so far so good.

• Over the past week we visited parts of Kazakhstan, the 9th largest country in the world.
• Long a favorite of the oil and uranium industry the country is now attracting more metals and mining exploration activity.
• Arras Minerals (ARK V EQUITY) has assembled the 4th largest exploration package and is looking for elephant sized gold/copper deposits. Success at any of its projects could catapult shares higher.

• Nike recently announced a significant leadership change, with CEO John Donahoe stepping down and longtime company veteran Elliott Hill set to take over.
• This transition comes amid a broader restructuring effort at Nike, aimed at addressing the company’s evolving business challenges.
• Donahoe, who led the company through several years of strategic shifts, including the prioritization of direct-to-consumer sales, had faced increasing pressure due to flat revenue growth and lower-than-expected guidance for fiscal 2025.

• The sharp decline in revenue/profits indicates that Fu Shou Yuan’s business model is not as excellent as previously imagined. The Company’s performance would still be heavily influenced by macro factors.
• Once Fu Shou Yuan slows down external expansion and explores endogenous growth, it usually doesn’t require too much capital, which means the Company would have greater motivation to distribute dividends.
• The economic downturn leading to performance headwinds is just short-term logic. In the long run, the logic behind the increasing demand in funeral industry has not changed. Valuation would rebound.

• August parcel volume growth moderated, but easing price pressure matters more
• In July & August, Chinese X-border parcel volume growth re-accelerated
• We believe easing price pressure should lead to express margin expansion

• Chart Industries, Inc. reported its 2024 second quarter results, showcasing robust financial performance, marked by several all-time highs across various metrics.
• The company, renowned for its industrial and energy equipment, posted record earnings in sales, operating income, and EBITDA margins, among others, signifying superior operational execution and strategic growth initiatives.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• In 2Q24, KE’s revenue grew by 20% YoY despite the weak property market.
• We believe property developers and personal landlords need KE more than the prosperous time.
• We believe the stock has an upside of 148% for the end of 2025. Buy.

Interim results, for the six months to 31 July (H125), will be published on 8 October. Ahead of that, S&U has alerted the market that based on the H1 performance, full year PBT is unlikely to meet the previous market consensus expectations. We believe this to be primarily a timing issue, reflecting the continuing impact of the temporary FCA restrictions on collections activity in the motor finance business. Once regulatory clarity has been established, we expect a significant recovery. Meanwhile, as previously reported, the property lending division continues to perform strongly. We have reduced our FY25 PBT estimate by 7% to £27m and will review our FY26 forecasts with the interim results.

• We anticipate that the upcoming 4Q24 will likely see a ~10% quarter-over-quarter (QoQ) upside.
• Among TSMC’s top clients are companies from the US, Taiwan, and Japan.
• Recently, we have heard that TSMC is reducing wafer quotations by about ~10% for 28nm and below, in order to adapt to the current environment.

• Kokusai has dropped 44% from its July peak, offering a long-term opportunity at reasonably attractive valuations. Management’s guidance looks conservative.
• KKR has reduced its stake from 43.4% to 23.2%, increasing the float while indicating that it still sees a long-term opportunity. Applied Materials has bought 14.7% of the company.
• The completion of a new factory in Japan should double production capacity to meet demand from makers of AI processors, high-bandwidth memory, 3D NAND and power devices.

• Kolte Patil reported a decent Q1FY25 with pre-sales of INR 711cr. This was lower than expected, however, adjusted for weak new launch activity, it was healthy.
• Q1FY25 pre-sales was mostly led by sustenance sales. New launches worth INR 1500cr have been initiated mostly in Q2FY25, thus will start reflecting in 2HFY25 pre-sales numbers.
• With highest-ever quarterly collection at INR 612cr, operating cash flows has remained strong. The balance sheet remains robust with negative net debt, allowing Kolte Patil to aggressively pursue new projects.

• HCG reported a decent Q1FY25 with revenue growth of 16.7% YoY, adjusted for a discontinued center in Bangalore. Growth was robust across both established and emerging centers.
• Emerging centers (Kolkata, Borivali and South Mumbai) grew strong at 33% YoY while established centers also grew healthy at 14% YoY. All emerging centers, but South Mumbai center, are profitable.
• We estimate that HCG could post a PAT of around INR 280cr+ by FY27. An investment in HCG at the current level has potential to provide an upside of 85%+.  

• Bajaj Finance (“BAF”) reported a decent Q1FY25 with robust AUM growth, however, loan losses came in slightly elevated. AUM grew 31% YoY to reach INR 3,54,192cr.
• Annualized credit cost inched up to 2.1% vs 1.75-1.85% guided for FY25. This was led largely by weak collection efficiency. BAF is working on enhancing its collection infrastructure.
• BAF listed its housing finance subsidiary on Sep 16, unlocking value for the shareholders. It created history with highest-ever subscription amount and got listed at a premium of 114%.

• The outlook for 4Q24 appears somewhat bearish at the moment, though it has not been fully defined before the end of October.
• Taiwanese companies such as MediaTek Inc (2454 TT), Novatek Microelectronics Corp (3034 TT) and Realtek Semiconductor (2379 TT) continue to be the main drivers of demand for UMC.
• On a positive note, there are warnings against overly relying on chips from Chinese manufacturers due to US sanctions.

• SMIC’s revenue might be looking at around US$2bn in 4Q24 and it’s a bit reduction of GM from 3Q24 because of the seasonality at the year end.
• Since around 2019, US was putting an sanction on China, no matter how the argument is true.
• SMIC continued delivering 7nm chips, and even the 5nm chips could be further delivered using a similar method, although the yield rate may be a concern.

• Qualcomm Eyes Bold, Friendly Intel Acquisition Amid Intel’s Existential Crisis
• Global Semi Sales Strength Continues In July. How Long Can It Last? 
• Asustek Soars, Uniquely Making Fresh 52-Week Highs Within PC Makers

• Welcome to Consumer Tales & Trends, your weekly roundup of the latest corporate developments, investment reports and sector events in the consumer industry.
• Sea (SE US) owned Shopee has partnered with YouTube to drive GMV growth and resist  competition with TikTok, which has strengthened its regional presence through its stake in Tokopedia,
• India’s strong shopping appetite was reflected in robust gold purchases in August and high demand for the iPhone 16 launched last week.

• Webtoon Entertainment, a Korean the world’s largest digital comics platform, has successfully completed IPO and private placement in June.
• The NAVER-backed storytelling platform has raised ~$359M and priced its IPO and concurrent private placement at $21.00 per share, at the top end of price range.  
• However, Webtoon Entertainment shares significantly underperformed with shares down ~48% below IPO offer price.

• Price momentum in August eased slightly vs July, the first M/M dip since March
• In the next two months, seasonality will moderate and Y/Y comps will get tougher
• If Q4 momentum wanes, we feel continued strong share performance less likely

• Anhui’s new VBP included OTC TCM for the first time, which poses a big challenge to the pricing autonomy of CR Sanjiu. This makes Sanjiu’s acquisition of Tasly more important/urgent. 
• Novo Nordisk’s performance has raised concerns. The capacity bottleneck for weight-loss drugs seems resolved. Could this signal that the market for weight-loss drugs is reaching its peak?
• Keymed Biosciences (2162 HK)’s CM310 will miss this year’s NRDL negotiations, putting the company at a disadvantage. Considering the competitive landscape, we are concerned about Keymed’s performance.

• TSMC: +17.5% Premium; Recent Trading Back in the 15-20% Range
• UMC: -0.3% Discount; Middle of the Range, Rising Short Interest in Taiwan
• ASE: +2.2% Premium; Spiking Short Interest in Taiwan Listed Shares

• The Timken Company, a diversified leader in the industrial sector, recently presented its financial results for the second quarter of 2024.
• In terms of financial performance, The Timken Company reported a revenue decline of 7% from the previous year, attributed primarily to a significant decrease in demand within the renewable energy sector, specifically from China Wind.
• Nevertheless, areas like rail, aerospace, and industrial distribution showed organic growth that helped offset the downturn from the renewable energy market.

• Sales increased 5.2% YoY to JPY273.4bn, with operating profit growing 7.1% YoY to JPY15.1bn.
• The revised forecast for FY02/25 includes revenue of JPY850.8bn and net income of JPY22.2bn.
• FY02/25 will cover a 9.5-month period, with expected one-time expenses and unchanged annual dividend levels.

• Hexcel Corporation has presented its second quarter 2024 results, which showed a commendable performance in several areas, although it also came with cautious revisions for future expectations due to emerging market conditions.
• This detailed analysis seeks to outline both strengths and challenges as elucidated during the earnings call.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Installed Building Products’ fiscal 2024 second quarter showcased a dynamic operating environment with improvements and strategic divestitures reflecting the company’s focus on core growth areas.
• Key financial results included an impressive increase in single-family sales, steady multi-family segment performance, and a slight uptick in commercial sales, albeit varying by submarket dynamics.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• ATI’s earnings for the second quarter of 2024 have underlined robust performance with several notable achievements and positive guidance updates, along with particular areas of focus and needed improvement.
• These highlights capture both the company’s current strengths and the challenges it navigates in a competitive and evolving market.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• MKS Instruments demonstrated robust financial management and strategic positioning in its second-quarter results for the fiscal year 2024.
• With a reported revenue of $887 million, the company performed at the high end of its guidance, supported by an earnings per share (EPS) of $1.53—a figure that not only exceeded their projected high but also included the positive impact of reduced interest expenses from recent financial maneuvers.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• MSC Industrial Direct Co., Inc., in its fiscal third quarter 2024 earnings report, highlighted several key aspects of its current state and future strategies amid a challenging macroeconomic environment.
• The company’s focus remains on improving its web initiatives, customer engagement, and operational efficiency while dealing with unexpected gross margin pressures and delays in strategic projects.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Lotus released a scope and study for the Little Cane project in Botswana
• The project hosts a low grade resource with 71% inferred
• The study includes three scenarios for production and focuses on reducing the need for drill and blast operations, potentially using drag lines for waste removal.

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• Ola Electric (OLAELEC IN) reportedly faces challenges with poor product service, leading to dissatisfied customers. This underscores the urgency to improve its service infrastructure and restore brand trust.
• The Indian electric two-wheeler sector saw weak sales in August, following a robust July, with Ola experiencing a sharp decline in monthly volumes and a loss of market share.
• Meanwhile, Maruti Suzuki India (MSIL IN)  is gearing up for a January 2025 EV launch and is preparing to establish a 25,000-unit charging infrastructure in advance.

• Asian ETF flows have been subdued during September as markets start to react positively to Fed rate cuts.
• Sands China (1928 HK) parent Las Vegas Sands (LVS US) continued to increase its stake as Macau tourists rise.  Shenzhou Intl Group Holdings (2313 HK) is seeing increased China sales.
• Metallurgical Corporation of China Ltd (1618 HK) reported a decrease in new contracts for 1H24. Kuaishou Technology (1024 HK) early investor sold most of its remaining stake in the company.

• Japan System Techniques Co., Ltd. (hereafter, JAST or the Company) is an independent system integrator that celebrated its 50th anniversary in March 2023.
• The Company develops systems for customers across a wide range of industries in a variety of fields, including finance, manufacturing, distribution, services, public services, telecommunications, transportation, and science and technology.
• It also offers four in-house JAST branded services, including the GAKUEN series of strategic university management systems for the education industry as well as the BankNeo integrated information system for financial institutions. 

• The Middleby Corporation, during their Second Quarter 2024 earnings call, presented a mixed scenario reflecting both strengths in strategic growth areas and the overarching pressure from macroeconomic conditions.
• The discussion, led by CEO Timothy FitzGerald and supported by executives including CFO Bryan Mittelman and Chief Technology and Operations Officer James Pool, provided insights into various segments of the company’s operations.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• SanBio Co Ltd (4592 JP) received conditional and time-limited marketing approval for Akuugo suspension for intracranial implantation in Japan, for improving chronic motor paralysis resulting from traumatic brain injury.
• The company will run two or so rounds of commercial production to accumulate inventories in preparation for launch. The earliest possible timing for shipment is assumed to be Q1FY26.
• SanBio has a cash runway through H1FY26. However, operating expenses will decrease and Akuugo will start generating revenue by H1FY26, thereby providing some more cushion to cash runway.

• Tetra Tech’s third quarter earnings for fiscal year 2024 presented a robust picture of the company’s financial health and operational achievements.
• The company reported a significant increase in net revenue, up 12% reaching $1.11 billion, setting a record for any quarter in the company’s history.
• Additionally, Tetra Tech marked a substantial EBITDA growth of 32% to $129 million, evidencing a stronger margin improvement relative to revenue growth.

• Robert Half, a global provider of specialized staffing and consulting services, reported its second quarter 2024 earnings, showcasing a blend of strengths and challenges within its business operations.
• The company reported consolidated revenues of $1.473 billion, reflecting a 10% decrease from the previous year on both reported and adjusted bases.
• This decline aligns with broader industry trends, where client and candidate caution is being observed amid macroeconomic uncertainties and interest rate concerns.

• Q1 FY3/25 earnings look negative at first glance, with both sales and operating profit falling. However, the details show strong demand for GEO HOLDINGS’ core second-hand fashion business and smartphone sales, helping gross profit increase.
• The key earnings drivers were a fall in sales (-6.2% YoY to ¥100.15bn) due to difficult annual comps from new games sales.
• However, GEO HOLDINGS’ core second-hand fashion business and smartphones enjoyed robust demand, thanks to new store openings at home and overseas.

• FTI Consulting’s latest earnings for the second quarter of 2024 reflect a period of robust performance and expansion.
• The company reported an impressive revenue growth of 12%, predominantly attributed to organic sources, and a notable increase in adjusted EBITDA by 27% year-over-year.
• While the quarter saw certain one time factors influencing the results, such as a lower-than-expected tax rate, the company’s management highlighted a strong operational performance across most of its operating segments and geographies.

• A Canadian company, Alimentation Couche-Tard, has made an unsolicited offer to acquire Japan’s Seven & I Holdings, the owner of the popular 7-11 convenience store chain, marking Japan’s largest foreign-led takeover attempt.
• This proposed takeover could signal a shift in Japan’s traditional resistance to foreign acquisitions, opening up opportunities for more global mergers and acquisitions in the country.
• The deal would create a global giant in the convenience store industry and represents a significant change in Japan’s deal-making and corporate culture.

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• Intuitive Machines is at the forefront of space exploration, specializing in lunar services and infrastructure, with a strong reliance on governmental contracts such as NASA.
• The company’s recent $4.82 billion Near Space Network contract with NASA solidifies its standing as a critical player in the burgeoning space economy.
• Intuitive Machines is uniquely positioned in the market with its lunar lander capabilities, data transmission services, and autonomous lunar operations.

• It’s an exciting time when your favorite semiconductor CEO comes out of “retirement” to return as a CEO.
• Mine is personally Ford Tamer, who drove Inphi to ship the best DSP in the market against much larger competitors at a much faster pace.
• In my opinion, Inphi was almost a miracle story in semiconductors. It was a literal David versus Goliath, and the man who led the team was Ford.

• China State Shipbuilding Corp. Ltd. (CSSC) and China Shipbuilding Industry Corp. (CSIC) on Wednesday announced a stock exchange proposal in their merger deal.
• Analysts said the proposed exchange terms are not favorable for shareholders of China Shipbuilding Industry.
• The two largest state-owned shipbuilding conglomerates determined the exchange ratio at 0.1335 shares of CSSC for each share of CSIC.

• Company specializes in battery products for electric vehicles and energy storage
• Competes with itself to continuously innovate and invent new chemistries
• Relies on state support in China to quickly meet consumer needs and roll out products efficiently

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• Three areas seeing strong innovation growth in online technologies are identity resolution methods, real-time data collection & personalization technologies and solutions to ensure data compliance and governance. 
• Celebrus Technologies (CLBS LN) is a micro-cap stock focused on the above areas and excels in real-time first-party data collection where data compliance and governance are critical.
• Celebrus’ small size and unique expertise in some areas of data privacy and real-time customer engagement makes it a acquisition target for larger MarTech and/or analytics companies.

• In FY03/24, revenue was JPY1.2bn (+7.6% YoY), operating loss was JPY604mn (vs operating loss of JPY557mn in FY03/23), recurring loss was JPY601mn (vs recurring loss of JPY547mn in FY03/23), and net loss attributable to owners of the parent was JPY643mn (vs net loss of JPY550mn in FY03/23). In the Laser Device business, revenue from DFB lasers for semiconductor wafer inspection equipment and micromachining equipment grew, as did revenue from prototypes for mass production using quantum dot lasers.
• In the Visual Information Display business, sales of RETISSA MEOCHECK to medical institutions expanded. On the profit front, the operating loss increased due to inventory write-downs of JPY28mn in the Laser Device business and JPY57mn in the Visual Information Device business.
• For FY03/25, the company forecasts revenue of JPY1.2bn (-0.2% YoY), operating loss of JPY589mn (vs operating loss of JPY604mn in FY03/24), recurring loss of JPY592mn (vs recurring loss of JPY601mn in FY03/24), and net loss attributable to owners of the parent of JPY596mn (vs net loss of JPY643mn in FY03/24). The company anticipates a tenth consecutive year of operating profit in its Laser Device business thanks to growing adoption.

• Growth Inflection: Goldwin’s mid-term plan targets ¥190 billion in sales, driven by The North Face’s expansion and a transformation of the Goldwin brand globally.
• Profitability: Shifting from wholesale to direct-to-consumer, Goldwin has achieved significant margin growth, expanding operating margins to 19%, with further gains expected.
• Strong Capital Position: Goldwin’s robust balance sheet and anticipated ¥100 billion free cash flow support shareholder returns, alongside a proven management track record of delivering on growth objectives.

• Boeing, a giant in the aerospace and defense industry, continues to find itself at the center of financial and operational turmoil.
• Recent updates on its second-quarter 2024 earnings call revealed deep-rooted challenges exacerbated by a striking workforce and continued production slowdowns.
• Yet, despite these hurdles, Boeing remains a critical player in the global aerospace market, buoyed by its extensive order backlog and future growth prospects.

• Rapid growth in tech and demand for personalized medicine drives need for efficient healthcare solutions.
• Samsung faces threat as trifold race loss jeopardizes smartphone market lead.
• ViewSonic’s AI technology displays target education and business markets with innovative solutions. Samsung diversifies global mobile phone production while Chinese MacBook case supplier faces quality issues.

• TSMC’s U.S. Production Strategy Achieves Major Milestone – Begins Production of Apple A16 Chips in Arizona
• Reports of Apple’s Disappointing Initial iPhone 16 Sales Data; Key Taiwan Suppliers Top Losers Recently
• Samsung Falling Behind TSMC – New Report of Low Yields Continuing to Plague Samsung’s 3nm AI Processors

• Explosive pagers linked to Hezbollah attacks spark controversy for a Taiwanese brand.
• Not just Lebanon – today it was reported that the South Korean military removed Chinese-made CCTV cameras after secret backdoors were detected.
• A counter-intuitive conclusion: Despite recent news, is the trend ultimately positive for Taiwanese tech hardware makers?

• The new transformer model requires significant amount of inference and multilevel reasoning
• The demand for inference compute is skyrocketing, surpassing current silicon architecture capabilities
• OpenAI’s new model showcases the future potential of AI, but also highlights the gap in semiconductor architectures and computing infrastructure

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• India has become one of the most expensive markets globally, trading at a PE of close to 28. Quality stocks now trade consistently around 50-90x PEs. 
• We have screened 80 names (market cap agnostic) that trade at PEs between 5 and 45, with an average PE of 20 and an average ROEs of 26%. 
• We treat this only as a filter and aim to do due diligence on all these stocks over the next few months. 

• Japan Eyewear Holdings (5889 JP) reported 30% YoY revenue growth in H1FY25. Profit margins also remained high, with operating profit margin exceeding 33% and operating profit reaching ¥2.7B, 1.5x YoY.
• The company has left FY25 guidance unchanged. The company’s cautious stance, yen appreciation, and darkening outlook of China amid weak economic data are the major downside risks.
• We think reactions are overdone. Limited downside is expected from here. Encouraging SSS growth through continuous increases in unit price and accelerated store expansion will remain the key growth drivers.

• GoTo Gojek Tokopedia together with Alibaba Group Holding announced a strategic partnership that locks the latter in for the next 5-years, with GOTO committing to utilising Alibaba Cloud.
• This move lifts a significant share price overhang and should provide GOTO with both cost benefits and AI capabilities cementing and aligning the interests of the two companies. 
• GoTo Gojek Tokopedia (GOTO IJ) continues to move the needle on its progress towards adjusted EBITDA breakeven by 4Q2024 led by product-led initiatives. 

• Timee Inc (215A JP) ’s share price has declined 26% over the last five days with the company reporting 3QFY10/2024 earnings on 12th September 2024.
• As we expected, top line growth has further slowed down while OPM for the quarter has dropped both QoQ and YoY concerning investors over Timee’s ability to generate sustainable margins.
• Timee’s proven business model has attracted Mercari and Sharefull to offer similar services, nevertheless, we would not be too concerned as Timee has the first mover advantage.

• kopi-C with GuocoLand’s Group CEO: ‘We have twin engines for growth’ Real estate company GuocoLand’s Group Chief Executive Officer Cheng Hsing Yao shares how focusing on development and investment has driven its growth and prepared it for the future.
• GuocoLand Limited (“GuocoLand”) and its subsidiaries (“the Group”) is a leading real estate group that is focused on its twin engines of growth in Property Investment and Property Development.

• In reviewing the latest results from Edwards Lifesciences, notable elements of growth and development paired with challenges shed light on the company’s financial and operational trajectory during the second quarter of 2024.
• With total company sales reaching $1.6 billion, this marked an 8% increase on a constant currency basis compared to the same period last year.
• While Transcatheter Aortic Valve Replacement (TAVR) growth was not as robust as expected, increasing by 6% globally, the Transcatheter Mitral and Tricuspid Therapies (TMTT) segment demonstrated impressive growth, with a 75% increase in sales.

• Gold Apollo denies involvement in Lebanon pager explosions, while Taiwan’s MOEA confirms pager assembly happening in Taiwan.
• Taiwan’s wafer foundry industry set to grow in 3Q 2024; can new orders and cost reductions drive Intel’s recovery?
• E Ink Prism technology revolutionizing automotive and consumer electronics;CATL looking to expand in solar-storage market.

• Tube Investments of India (TIINDIA IN) is focused on clean mobility solutions through its subsidiary, TI Clean Mobility Private Limited. 
• The subsidiary’s Montra Electric 3-wheelers have quickly gained market share in southern India, targeting the last-mile mobility segment. 
• TI’s management is keenly focused on the EV segment, with upcoming launches of e-rickshaws and a new Cargo Version poised to drive substantial growth in the near future.

• US DoD & AWS deals are little more than distractions from the main event
• Making Intel Foundry a subsidiary won’t make one whit of a difference but may just be the next step in its eventual spin-off
• The core issue, the GM collapse in Q224, was not addressed in the BM update from the CEO. That’s a problem. 

• Oracle Corporation’s Q1 FY 2025 results demonstrated a robust performance, underscored by significant revenue growth and strategic expansions in their cloud offerings.
• The total revenue for the quarter was $13.3 billion, marking an 8% year-over-year increase.
• Cloud revenue was a standout with SaaS and IaaS generating $5.6 billion, reflecting a 22% increase.

• The biosimilar market is forecast to grow three to four times faster than the generic drug market over the next five years.
• However, we believe that this high growth will not necessarily imply good profitability, given the early stage of the biosimilar market, complications and competition.
• We also believe that the company’s guidance is too optimistic resulting in an expensive multiple. We prefer some room for error.  

• Adaro Energy (ADRO IJ) has announced that it intends to spin off its thermal coal related assets under Adaro Andalan Indonesia, allowing it to focus purely on its sustainable businesses. 
• The move will potentially allow it to realise a higher valuation for its pure coal assets while paving the way for access to sustainable financing for its renewable businesses. 
• This will help the group accelerate the progress towards having more than 50% of its revenues from non-coal businesses by 2023. Adaro Energy (ADRO IJ) can trade at higher multiples.

Triple Point Social Housing REIT (SOHO) returned to full dividend cover in H124, with EPRA earnings benefiting from inflation-linked, mostly uncapped rental growth and improving rent collection. Property valuations and NAV per share were lower, but progress with the two problem tenants and falling interest rates suggest this could reverse. Meanwhile, the shares yield more than 8% with the board targeting asset sales and share repurchases to address the discount to NAV.

• RaaS Research Group has published a flash comment on advanced materials manufacturing group Amaero International (ASX:3DA) following the completion of an upsized institutional placement to raise $25m at $0.35/share to fund capital equipment purchases and further fit out its Tennessee facility.
• The raise was not unexpected; we had factored in a $22.5m raise at $0.34/share in our modelling before 30 September.
• We have incorporated the raise into our forecasts with no impact on current numbers.Post raise, the company will have pro-forma cash of approximately $37.5m to fund the capex programme ahead of ramping up production and transitioning to commercial sales.

• EDG announced assay results for its first six drill holes as part of its 10,000m 2024 drill program, it has completed 11 holes (3,500m) to date.
• Today’s results confirm high-grade at-depth (~175m vertical) and extends the Imperial Zone ~100m to the northwest along strike (still open).
• Assays for the next five drill holes are expected to be released in mid-October.

• Samsung Electronics (005930 KS) is a leading beneficiary of the recovery in global Smartphone demand, and strength in Memory prices, driven by the proliferation of Gen AI demand.
• Global Memory prices have recovered by up to +80%y/y driven by demand from hyperscaler customers for leading-technology DDR5, HBM, and other high-value-added memory products.
• Samsung Electronics trades more than one standard deviation below its 5-year historic average trading range, a historically proved to be an excellent buying point.

• Jet2 stock has been accumulating over the last 6 months, trading at a lower valuation compared to competitor BKNG
• Company has shifted focus to asset-light package holiday earnings, with majority of flight passengers now going on package holidays
• Despite being range-bound since COVID-19, Jet2 has continued to grow and execute its plans, offering an attractive investment opportunity with low earnings multiple and smart fleet choices by founder

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.

• JM Financial has decadal experience of being the powerhouse of financial services giant. 
• The company has been a bad capital allocator for the years and hence could not participate in the mega bull run.  
• What makes it interesting is a company is changing its strategy of capital allocation while cherry on the cake is attractive valuations and promoter buying.

• Alibaba’s Taobao and Tmall apps decide to accept WeChat Pay, the online payment way from Tencent.
• JD announced that it will raise employee salaries up to 20 months within two years.
• Hive Box, the market dominator of parcel locker in China, submitted its IPO proposal.

• Hong Kong Conglomerate Sector is showing renewed strength with Materials and Energy under pressure.  HK market 30 day volatility at 5 year low as market continues to de-risk.
• Hengan International Group (1044 HK) chart broke down from its Descending Triangle pattern after reporting its 1H24 results. J&T Global Express (1519 HK) broke down from its double bottom pattern.
• China Galaxy Securities (H) (6881 HK) price relative to the MSCI China index broke to a new high.  The company reported good results in a difficult environment for China brokers.

• The sales volume growth rate began to accelerate in August.
• Geely’s revenue grew strongly by 39% YoY in 2Q24 and 47% YoY in 1H24.
• The operating margin had improved YoY for the past one year and a half.

• Intel Corporation, once the unchallenged leader in the semiconductor space, has recently found itself in a precarious position.
• With its stock prices plummeting and revenues falling, Intel is struggling to regain its footing in a market dominated by foreign giants like TSMC and Samsung.
• The U.S. government, through multiple initiatives and significant financial commitments, has stepped in to rescue the beleaguered company, seeing it as crucial to both national security and economic competitiveness.

• Orient Overseas International (316 HK) sits on decent yields of 12% for FY24 and 9.6% for FY25. Its net cash (66.2% of the share price) can support such dividends.
• Despite the retreat from the recent peak, the spot freight rates are 9.7% and 145% higher than 1H24 and 2H23 respectively, pointing to better 2H24 earnings.
• Operationally, it recorded the first YoY realised rate increase in 2Q24 after 6 quarters of consecutive decline. Its load factor also grew 2.3pp YoY in the quarter.

• Innovation trends and patent filings within the food industry saw significant upswing over the year in the areas of natural ingredients and methods to manufacture vegan proteins.
• Ingredion Ingredion Inc (INGR US) has a leadership position in  the fast growing Clean Label, Sugar Reduction and Plant-Based Protein Technologies
• On a relative basis the stock despite better profitability metrics trades at a discount to the country-sector median and on an absolute basis at about 20% discount to FV.

• Microsoft today announced a major Copilot update, called “Wave 2”, introducing a new collaborative interface and enhanced Copilot capabilities across all major Office apps.
• Copilot continues to gain momentum with large corporations, as Microsoft announced today that Vodafone has adopted it for 68,000 employees.
• We remain Structurally Long PC Makers – We continue to believe Microsoft’s Copilot will drive PC upgrades as users recognize the productivity benefits of faster ‘AI PCs’. 

• Max Healthcare Institute (MAXHEALT IN) to acquire controlling stake in Jaypee Healthcare (JHL), which owns 3 hospitals in Uttar Pradesh, including the renowned 500-beds Jaypee Hospital, Noida.
• JHL reported revenue of INR4.21B and EBITDA of INR70M in FY24. With an EV of INR16.6B, the deal values JHL at EV/EBITDA of 23.7x, which seems reasonable.
• This acquisition will significantly enhance Max Healthcare’s network and strengthen its leadership position in NCR, a region which is home to around 46M people.

• On the surface, it seems that Hengrui’s performance growth in 24H1 is very high, but if excluding the upfront payment from Merck, the Company’s performance actually falls short of expectations.
• Our forecast of revenue growth in 2024, 2025, 2026 (excluding Merck’s upfront payment) is 12% YoY, 8% YoY, 15% YoY, respectively. By 2026, Hengrui may still suffer from VBP.
• Hengrui is overvalued and reasonable P/E is about 30 (or lower). We also don’t think Hengrui’s valuation should be higher than that of BeiGene. Current high valuation cannot be justified.

• TSMC: +16.6% Premium; Returning to the 15 – 20% Trading Range?
• UMC: +0.5% Premium; Near the Middle of the Historical Trading Range
• ASE: +5.2% Premium; Participating in Two Investor Conferences in Next Two Weeks

• Welcome to Consumer Tales & Trends, your weekly roundup of the latest corporate developments, investment reports and sector events in the consumer industry.
• Temu, (owned by PDD US), and Shein might need to rethink their US strategies if a new rule stops overseas shipments of tariffed products from bypassing US customs duty.
• Singapore passed a groundbreaking law last week to protect gig workers. Other countries may follow suit and this could adversely impact margins. Take note: Meituan (3690 HK) , Zomato (ZOMATO IN)

• The P/B multiple of Cosco Shipping Energy Transportation (H) (1138 HK) has pulled back to 0.8x now, from 1.3x three months ago. The risk-reward payoff has improved.
• Historically, there is no long-term correlation between oil prices and share prices. Hence, we should not be overfocused on the recent pullback in oil prices.
• Although the market consensus is high, FY24 should still see growth. The 3Q24 VLCC spot rate is 27.4% higher YoY, potentially boosting quarterly results and sustaining a high FY24 yield. 

• Workers at US East/Gulf Coast ports could strike without new contract by Oct 1st
• But data suggest importers have been boosting inventory over past few months
• Although US West Coast port workers support ILA, they’re unlikely to strike

• We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety.
• Our top picks are Perfect Medical Health (1830 HK), The Keepers Holdings (KEEPR PM), Taste Gourmet (8371 HK), Uchi Technologies (UCHI MK), and Ginebra San Miguel (GSMI PM).
• We update recent results for Philippines names and Uchi Technologies (UCHI MK), which recently declared earnings.

• RaaS has initiated coverage of video software and hardware technology group BirdDog Technology (ASX:BDT) with a base case valuation of $0.27/share, representing 335% potential upside to the current share price.
• A challenging FY24 is now behind the business and the causes of the problems have been addressed and resolved, in our view.
• BDT invested heavily in R&D through the downturn with the investment program set to yield results on a strong revenue uptick from the release of multiple new products across several categories.