Daily Briefs

MACOM’s third fiscal quarter 2024 financial results exhibit both strengths and areas of concern, offering a mixed bag for potential investors.
The company reported a revenue of $190.5 million with an adjusted EPS of $0.66 per diluted share, marking a positive trend in turnover buoyed by sequential growth in the Data Center and Telecom segments.
This financial performance was complemented by an impressive generation of over $40 million in free cash flow and an ending cash position of $521 million in cash and short-term investments.

Wolfspeed Inc.: Are Its Financial Restructuring & Capital Structure Changes Expected To Improve Margins? – Major Drivers

Wolfspeed Inc. has reported its results for the first quarter of fiscal year 2025, indicating a period of strategic transitions and adjustments amidst a challenging macroeconomic environment.
The company is emphasizing the transition to a 200-millimeter silicon carbide (SiC) platform, which is seen as critical to its operational efficiency and market leadership.
Wolfspeed aims to optimize its manufacturing processes to lower costs and accelerate profitability—key components of its broader strategy to tap into the growing demand for SiC in electric vehicles (EVs) and other industrial applications.

FuelCell Energy: Expanding Manufacturing Capabilities To Better Capitalize On Emerging Opportunities! – Major Drivers

FuelCell Energy recently released its financial results for the fourth quarter and fiscal year-end 2024, highlighting a mix of robust revenue growth and significant restructuring initiatives aimed at positioning the company for future profitability.
Revenue for the fourth quarter rose dramatically by 120% year-over-year, reaching $49.3 million, primarily driven by module sales to Gyeonggi Green Energy (GGE) in South Korea.
Despite this quarterly increase, the full fiscal year 2024 revenue showed a decline compared to the previous year.

Disney’s Master Plan For 2025: Ad-Supported Streaming & Hulu+FuboTV Merger Set To Transform the Industry!

The Walt Disney Company is making significant strides in 2025, positioning itself for substantial growth and market influence through strategic mergers and innovative streaming initiatives.
Recently, Disney announced a landmark merger between its Hulu + Live TV service and FuboTV, creating the second-largest digital pay-TV provider in North America.
This move not only consolidates Disney’s presence in the live TV streaming market but also leverages FuboTV’s sports-centric audience to enhance Disney’s already robust content offerings.

Intel (INTC.US): Exploring a Tough Journey. (II)

By Patrick Liao

Considering of current financial outcome of Intel Corp (INTC US), we cannot but favor Advanced Micro Devices (AMD US).
Currently, Advanced Micro Devices (AMD US) has a more favorable competitive landscape compared to Intel Corp (INTC US).
The competition in PC CPU emphasizes not only performance but also heat dissipation and other techniques related to supply management.

Meta’s New Moderation Strategy: A Trump-Friendly Game Changer?

Meta Platforms is making headlines once again with its latest overhaul of content moderation policies, signaling a significant shift in how the social media giant manages user interactions and information dissemination.
In a bold move, Meta announced the elimination of its third-party fact-checking program, aiming to “restore free expression” by adopting a crowdsourced “Community Notes” model akin to Elon Musk’s X platform.
CEO Mark Zuckerberg emphasized that the previous system was “too politically biased” and eroded trust, particularly in the United States.

Diodes Incorporated: An Analysis Of Its Automotive Market Expansion & Other Major Growth Drivers

Diodes Incorporated has reported its financial results for the third quarter of fiscal 2024.
The company’s revenue exceeded expectations, reaching $350.1 million, a sequential increase of 9.5% from the second quarter but a decline from $404.6 million in the previous year.
This growth was notably supported by improved demand in Asia, particularly the automotive sector, which rose by 18% and accounted for 19% of product revenue.

Marriott Vacations Worldwide: An Insight Into Its Strategic Expansion

Marriott Vacations Worldwide has delivered mixed results in its third quarter 2024 performance, characterized by strategic initiatives aimed at driving growth and efficiency, amidst ongoing economic challenges.
The company reported increased contract sales by 5% year-over-year, with a significant portion driven by first-time buyers, and resort occupancy nearing 90%.
This suggests a strong demand for vacation ownership despite economic pressures faced by consumers.

Clear Secure Inc.: Expansion Of TSA PreCheck As A Primary Growth Accelerator! – Major Drivers

In Clear’s fiscal third quarter 2024 financial results, the company reported significant advancements and positive momentum across its core strategic areas: enhancing member experience, scaling TSA PreCheck, and expanding Clear Verified.
The company continues to innovate in identity verification, noting strong adoption of its face-first NV (enrollment and verification) hardware, resulting in three times faster processing with improved privacy features.
Clear, a leader in secure identity solutions, is focused on simplifying the travel process and enhancing security.

Braze Inc.: The Top 6 Factors Influencing Its Performance For 2025 & The Future! – Major Drivers

Braze, Inc. reported its fiscal third-quarter 2025 earnings, showcasing revenue growth and strategic initiatives aimed at solidifying its position in the customer engagement platform sector.
The company achieved a revenue of $152.1 million, marking a 23% increase year-over-year.
This growth was primarily driven by strong customer contract renewals, expansions, and the signing of new business, resulting in a committed annual recurring revenue exceeding $600 million.

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Jan 12

Daily Brief China: Qingdao Haier Biomedical Lt, Yibin City Commercial Bank Co Ltd, CSSC (Hong Kong) Shipping Co Ltd, Evergreen Marine Corp and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

China Healthcare Weekly (Jan.12) – Haier Biomedical and RAAS Terminated Their Merger
Yibin Bank (2596 HK): 100% IPO Float Fails to Secure Global Index Inclusion
BUY/SELL/HOLD: Hong Kong Stock Update (January 10)
Container Shipping: Mean Reversion in 2025, Yes, but to WHICH Mean?

China Healthcare Weekly (Jan.12) – Haier Biomedical and RAAS Terminated Their Merger

By Xinyao (Criss) Wang

Since the room for China’s medical insurance fund to continue to increase reimbursement for high quality innovative drugs is still large, we are optimistic about 2025 NRDL negotiation.
Although it’s inevitable trend for commercial insurance to cover innovative drugs, it won’t truly improve the payment end until the contribution of commercial insurance to hospital revenue increase to 10-15%.
Due to the complexity of the transaction, Haier Biomedical and RAAS terminated their merger. We think disagreements would easily emerge regarding the core issue in this transaction (i.e. the price).

Yibin Bank (2596 HK): 100% IPO Float Fails to Secure Global Index Inclusion

By Dimitris Ioannidis

Yibin City Commercial Bank Co Ltd (2596 HK) is scheduled to debut on the HKEX on 13 January 2025 at a market capitalization of ~$1.6bn.
The IPO free float is 100% as the offered shares represent all the listed shares. However, the significant amount of unlisted shares result in a low fcap.
The security can be added at the June 2025 review if the stock price mimics the IPO debut of Bloks (325 HK) and surges by ~84%.

BUY/SELL/HOLD: Hong Kong Stock Update (January 10)

By David Mudd

Hong Kong and China shares have outperformed most Asian markets over the last year. In HK the consumer discretionary sector has lost strength and momentum over the last 4 weeks.
CSSC (Hong Kong) Shipping Co Ltd (3877 HK) was rated BUY after reporting strong results. Analysts have a target price of $2.50 on the stock.
Bosideng International Holdings (3998 HK) has shown earnings growth exceeding revenue growth for the last seven years. Technically, the stock looks weak near term, but analysts project 60% upside.

Container Shipping: Mean Reversion in 2025, Yes, but to WHICH Mean?

By Daniel Hellberg

We expect container shipping profits to begin to revert to historical levels in 2025
Between 2009 and 2019, Evergreen Marine’s mean OpInc margin was negative 0.8%
We believe path to mean industry returns & near-term risks both misunderstood; AVOID

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Jan 12

Daily Brief Japan: Seven & I Holdings, Mitsubishi UFJ Financial (MUFG), Pressance Corp, Shinko Electric Industries, Allegro MicroSystems and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Last Week in Event SPACE: Seven & I, PA Gooddoctor, Fuji Soft, WH Group
Opportunity Within Europe and Japan; EURO STOXX 50 and TOPIX/Nikkei 225 Near Major Breakouts
Open House Finally Takes Out Pressance (3254) – Done Deal Done Cheap
Pressance (3254 JP): Open House (3288 JP) JPY2,390 Tender Offer a Done Deal
(Mostly) Asia-Pac M&A: Insignia Financial, Arcadium, CPMC, GAPack, Haitong Sec., Shinko Electric
Allegro MicroSystems: Can Its Localization In China Enhance Their Competitive Edge In The Region? – Major Drivers

Last Week in Event SPACE: Seven & I, PA Gooddoctor, Fuji Soft, WH Group

Seven & I Holdings (3382 JP)‘s analysts’ call transcript is worth listening to. The math on the takeover maths well. This is a buy on dip. Again.
Those who bought into Ping An Healthcare and Technology (1833 HK)‘s punchy dividend, whether in cash or scrip, the trade has panned out well.
KKR extends its Offer for Fuji Soft Inc (9749 JP). Separately, Bain said it had destroyed confidential data, as requested, but it’s unclear how and when that data was destroyed.

Opportunity Within Europe and Japan; EURO STOXX 50 and TOPIX/Nikkei 225 Near Major Breakouts

By Joe Jasper

Our bullish outlook on global equities (MSCI ACWI) remains intact. Actionable Themes today include Financials, Energy, and Consumer Discretionary (European Luxury Retailers)
We view this pullback as a buying opportunity and we are watching for $116-$117 support to hold on ACWI-US; this is an important resistance-turned-support level dating back to July 2024.
Europe and Japan are on the cusp of major breakouts above critical resistance levels of 5000-5120 on the EURO STOXX 50 and 2740-2820 on the TOPIX

Open House Finally Takes Out Pressance (3254) – Done Deal Done Cheap

Four-Plus years ago, Open House (3288 JP) bought the stake in Pressance Corp (3254 JP) owned by its embattled CEO (who had been arrested for a scandal).
Four years ago, Open House launched a partial tender and capital injection to go to ~65%. A takeout was a matter of time.
That time has come. Today Open House announced a Tender Offer to take Pressance fully-private. This is an easy deal. A done deal. Done too cheap.

Pressance (3254 JP): Open House (3288 JP) JPY2,390 Tender Offer a Done Deal

By Arun George

Pressance Corp (3254 JP) announced a tender offer from Open House (3288 JP) at JPY2,390 per share, a 22.1% premium to the last close.
While the offer is below book value, it represents an all-time high and broadly aligns with the mid-point of the target IFA’s DCF valuation range.
The low minimum acceptance condition (2.3 million or 3.25% ownership ratio) suggests a done deal. The offer runs from 14 January to 26 February (30 business days).

(Mostly) Asia-Pac M&A: Insignia Financial, Arcadium, CPMC, GAPack, Haitong Sec., Shinko Electric

I tally 51 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
One new deal was discussed this week: CC Capital’s NBIO for Insignia Financial (IFL AU).
Key updates/news took place on: Arcadium Lithium (LTM AU), CPMC Holdings (906 HK), Greatview Aseptic Packaging (468 HK), Haitong Securities (H) (6837 HK), and Shinko Electric Industries (6967 JP).

Allegro MicroSystems: Can Its Localization In China Enhance Their Competitive Edge In The Region? – Major Drivers

Allegro MicroSystems reported its second-quarter fiscal 2025 earnings, showcasing a blend of resilience and challenges within a fluctuating market environment.
The company’s revenue for the quarter was $187 million, reflecting sequential growth in both automotive and industrial sectors.
However, year-over-year comparisons showed a 32% decline in sales, highlighting significant market challenges.

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Jan 12

Most Read: ZTO Express Cayman , Tencent, Seven & I Holdings, Sigma Healthcare, Horizon Robotics, Japfa Comfeed Indonesia, Bloks Group, Shift Inc, Pressance Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

HSCEI Index Rebalance Preview: Increase in Velocity Could Lead to 3 Changes in March
Tencent (700 HK): DoD Says Chinese Military Company; Not on NS-CMIC List Yet
7&I (3382 JP) – Dippity Doo Dah – Irrational Fears, Earnings Vol, But Restructuring Proceeding Apace
S&P/ASX Index Rebalance Preview: Lots of Change; Could Be More with Sigma/CWG Merger
HSCI Index Rebalance Preview and Stock Connect: Updated Potential Changes in March 2025
Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Up to 5 Changes in March
LQ45 Index Rebalance Preview (Jan 2025): Identifying Potential Index Changes
Bloks (325 HK): Global Index Inclusion Following IPO Lock-Up Expiry
[Quiddity Index Jan25] Nikkei 225 Mar Rebal: 3 IN, 3 OUT, $3bn One Way
Open House Finally Takes Out Pressance (3254) – Done Deal Done Cheap

HSCEI Index Rebalance Preview: Increase in Velocity Could Lead to 3 Changes in March

BeiGene and ZTO Express Cayman are potential inclusions for the Hang Seng China Enterprises Index in March while Sino Biopharmaceutical and Li Ning are potential deletions.
There is a lower probability of Yum China Holdings (9987 HK) replacing Sunny Optical Technology Group (2382 HK) in the index in March.
There could be a few more index inclusions for ZTO Express Cayman in March and the stock could outperform its peers over the next few months.

Tencent (700 HK): DoD Says Chinese Military Company; Not on NS-CMIC List Yet

The U.S. Department of Defense has designated Tencent (700 HK) as a Chinese Military Company. Tencent Holdings (ADR) (TCEHY US) shares were down nearly 8% overnight.
There is no change to the Non-SDN Chinese Military-Industrial Complex Companies List (NS-CMIC) yet. But the overlap between the DoD list and the NS-CMIC list is high.
If added to the NS-CMIC list, Tencent (700 HK) will be deleted from global indexes and there will be HUGE passive selling from these trackers.

7&I (3382 JP) – Dippity Doo Dah – Irrational Fears, Earnings Vol, But Restructuring Proceeding Apace

Recent news on the Seven & I Holdings (3382 JP) situation includes better-than-expected possible sale of the SST business, a little headline fear-mongering on national security, and earnings.
Earnings this year will be volatile vs expectations. Timing (and magnitude) of kitchen-sinking matters. But neither ACT nor you should be buying it based on trough earnings expectations.
The call transcript is worth listening to. The math on the takeover maths well. This is a buy on dip. Again.

S&P/ASX Index Rebalance Preview: Lots of Change; Could Be More with Sigma/CWG Merger

Nearing the end of the review period, there could be 36 adds/deletes across the S&P/ASX family of indices in March.
Passive trackers will need to trade a lot of stock in the forecast changes, with the impact being especially large for the changes to the S&P/ASX 200 and S&P/ASX 300.
Completion of the merger with Chemist Warehouse in February will set off huge passive buying in Sigma Healthcare (SIG AU) over the February to June period.

HSCI Index Rebalance Preview and Stock Connect: Updated Potential Changes in March 2025

We see 38 potential and close adds and 51 potential and close deletes for the Hang Seng Composite Index in March. Some of the stocks are close on market cap/liquidity.
There have been many new listings in the last weeks of December. Some of them are fairly large and will be added and that increases the number of potential deletions.
There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.

Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Up to 5 Changes in March

The review cutoff date for the March rebalance of the HSIII was 31 December. The changes will be announced on 21 February and become effective after the close 7 March.
There could be 5 changes to the index with some inclusions driven by potential addition to the Hang Seng Composite Index. That could lead to buying via Southbound Stock Connect.
Horizon Robotics (9660 HK) is a potential inclusion to the HSCI and the Hang Seng TECH Index (HSTECH INDEX) in March.

LQ45 Index Rebalance Preview (Jan 2025): Identifying Potential Index Changes

The review period for the LQ45 Index January rebalance ended 31 December. The changes should be announced the last week of January, becoming effective after the close on 31 January.
We highlight 4 potential inclusions and 4 potential exclusions for the index at the rebalance. The actual number of changes could be lower at 2-3 a side.
Nearly all stocks will have over 1x ADV to trade from passive trackers if they are added to or deleted from the index.

Bloks (325 HK): Global Index Inclusion Following IPO Lock-Up Expiry

By Dimitris Ioannidis

Bloks (325 HK) is expected to be assigned an index nationality of Hong Kong instead of China due to its incorporation in the Cayman Islands.
The security is expected to be added at the September 2025 review following the 6-month IPO lock-up expiry which increases the fcap above the APAC threshold.
The security is ineligible for the other global index until January 2026 because of the free float being below the minimum threshold of 15%.

[Quiddity Index Jan25] Nikkei 225 Mar Rebal: 3 IN, 3 OUT, $3bn One Way

In December, I thought the March 2025 Nikkei 225 Rebalance was going to be 2 ADDs 2 DELETEs and a double-capping for Fast Retailing.
Fast Retailing has fallen sharply vs Nikkei 225, and another stock has announced a large-multiple share split, making it a strong candidate for Nikkei 225 ADDITION in March 2025.
There is short-term path risk on all three ADDs, but they are definitely worth watching. Keep an eye out for separate insights on two of these names.

Open House Finally Takes Out Pressance (3254) – Done Deal Done Cheap

Four-Plus years ago, Open House (3288 JP) bought the stake in Pressance Corp (3254 JP) owned by its embattled CEO (who had been arrested for a scandal).
Four years ago, Open House launched a partial tender and capital injection to go to ~65%. A takeout was a matter of time.
That time has come. Today Open House announced a Tender Offer to take Pressance fully-private. This is an easy deal. A done deal. Done too cheap.

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Jan 12

Daily Brief Industrials: FuelCell Energy , Nova Technology Corp/Taiwan, Donaldson Co, Evergreen Marine Corp, CSSC (Hong Kong) Shipping Co Ltd, Huntington Ingalls Industries, Kbr Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

FuelCell Energy: Expanding Manufacturing Capabilities To Better Capitalize On Emerging Opportunities! – Major Drivers
Asian Dividend Gems: Nova Technology Corp
Donaldson Company: Industrial Solutions Expansion As A Pivotal Growth Lever! – Major Drivers
Container Shipping: Mean Reversion in 2025, Yes, but to WHICH Mean?
BUY/SELL/HOLD: Hong Kong Stock Update (January 10)
Huntington Ingalls Industries: An Insight Into Its Capital Allocation & Financial Health & Major Growth Drivers
KBR Inc.: Is The Strategic Growth In Sustainable Technologies Solutions (STS) Here To Stay? – Major Drivers

FuelCell Energy: Expanding Manufacturing Capabilities To Better Capitalize On Emerging Opportunities! – Major Drivers

FuelCell Energy recently released its financial results for the fourth quarter and fiscal year-end 2024, highlighting a mix of robust revenue growth and significant restructuring initiatives aimed at positioning the company for future profitability.
Revenue for the fourth quarter rose dramatically by 120% year-over-year, reaching $49.3 million, primarily driven by module sales to Gyeonggi Green Energy (GGE) in South Korea.
Despite this quarterly increase, the full fiscal year 2024 revenue showed a decline compared to the previous year.

Asian Dividend Gems: Nova Technology Corp

By Douglas Kim

Nova Technology Corp is a leading company in Taiwan in integrating water, gas, and chemical systems for high-tech industrial facilities.
Nova Technology provides high dividend payout and excellent dividend yield. From 2019 to 2023, the company’s dividend payout and dividend yield averaged 71.7% and 7.2%, respectively.
Nova Technology generates high levels of ROE. Its ROE improved from 23% in 2021 to 28.7% in 2022 and 30.3% in 2023.

Donaldson Company: Industrial Solutions Expansion As A Pivotal Growth Lever! – Major Drivers

Donaldson Company, a prominent player in the filtration solutions industry, reported robust financial performance in the first quarter of fiscal 2025.
The company’s sales totaled $900 million, reflecting a year-over-year increase of 6%.
This growth was primarily driven by volume expansion, with a marginal pricing and currency benefit contributing to the results.

Container Shipping: Mean Reversion in 2025, Yes, but to WHICH Mean?

By Daniel Hellberg

We expect container shipping profits to begin to revert to historical levels in 2025
Between 2009 and 2019, Evergreen Marine’s mean OpInc margin was negative 0.8%
We believe path to mean industry returns & near-term risks both misunderstood; AVOID

BUY/SELL/HOLD: Hong Kong Stock Update (January 10)

By David Mudd

Hong Kong and China shares have outperformed most Asian markets over the last year. In HK the consumer discretionary sector has lost strength and momentum over the last 4 weeks.
CSSC (Hong Kong) Shipping Co Ltd (3877 HK) was rated BUY after reporting strong results. Analysts have a target price of $2.50 on the stock.
Bosideng International Holdings (3998 HK) has shown earnings growth exceeding revenue growth for the last seven years. Technically, the stock looks weak near term, but analysts project 60% upside.

Huntington Ingalls Industries: An Insight Into Its Capital Allocation & Financial Health & Major Growth Drivers

Huntington Ingalls Industries (HII) recently reported its third-quarter earnings for 2024, presenting a mixed picture of operational performance and future expectations amid challenges.
The company’s reported revenue for the quarter was $2.7 billion, representing a 2.4% decrease from the prior year.
Additionally, earnings per share were down to $2.56 from $3.70 in the previous year.

KBR Inc.: Is The Strategic Growth In Sustainable Technologies Solutions (STS) Here To Stay? – Major Drivers

KBR Inc. demonstrated robust performance in Q3 2024, reflecting double-digit year-over-year growth in revenue and profitability.
Revenue for the quarter increased by 10%, while adjusted EBITDA rose by 18%.
This growth was driven by strategic business expansion and effective cost management.

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Jan 12

Daily Brief TMT/Internet: Ma Com Technology Solutions, Endava PLC, Shinko Electric Industries, Wolfspeed, Meta Platforms (Facebook), Intel Corp, Diodes Inc, Clear Secure, Broadridge Financial Solutions, Inc, Axcelis Technologies and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

MACOM Technology Solutions: Its Efforts Towards Strategic Growth In The Telecom Sector & Other Major Drivers
Endava Plc.: Global Expansion & Integration Strategies As A Critical Factor Driving Growth! – Major Drivers
(Mostly) Asia-Pac M&A: Insignia Financial, Arcadium, CPMC, GAPack, Haitong Sec., Shinko Electric
Wolfspeed Inc.: Are Its Financial Restructuring & Capital Structure Changes Expected To Improve Margins? – Major Drivers
Meta’s New Moderation Strategy: A Trump-Friendly Game Changer?
Intel (INTC.US): Exploring a Tough Journey. (II)
Diodes Incorporated: An Analysis Of Its Automotive Market Expansion & Other Major Growth Drivers
Clear Secure Inc.: Expansion Of TSA PreCheck As A Primary Growth Accelerator! – Major Drivers
Broadridge Financial Solutions: Can Its Strategic Acquisitions Further Catalyze Top-Line Growth? – Major Drivers
Axcelis Technologies: Will Its Geographical Diversification With A Japan Focus Be A Potential Game Changer? – Major Drivers

MACOM Technology Solutions: Its Efforts Towards Strategic Growth In The Telecom Sector & Other Major Drivers

MACOM’s third fiscal quarter 2024 financial results exhibit both strengths and areas of concern, offering a mixed bag for potential investors.
The company reported a revenue of $190.5 million with an adjusted EPS of $0.66 per diluted share, marking a positive trend in turnover buoyed by sequential growth in the Data Center and Telecom segments.
This financial performance was complemented by an impressive generation of over $40 million in free cash flow and an ending cash position of $521 million in cash and short-term investments.

Endava Plc.: Global Expansion & Integration Strategies As A Critical Factor Driving Growth! – Major Drivers

Endava PLC reported its financial results for the first quarter of fiscal year 2025, reflecting a period of transition and adaptation to evolving digital transformation trends.
The company experienced a revenue increase of 3.5% to £195.1 million compared to the same period last year, representing a constant currency growth of 5.2%.
This growth beat their guidance, and the company emphasized a notable shift in market demand towards AI and core modernization-driven growth, despite a slowdown in traditional digital business.

(Mostly) Asia-Pac M&A: Insignia Financial, Arcadium, CPMC, GAPack, Haitong Sec., Shinko Electric

I tally 51 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
One new deal was discussed this week: CC Capital’s NBIO for Insignia Financial (IFL AU).
Key updates/news took place on: Arcadium Lithium (LTM AU), CPMC Holdings (906 HK), Greatview Aseptic Packaging (468 HK), Haitong Securities (H) (6837 HK), and Shinko Electric Industries (6967 JP).

Wolfspeed Inc.: Are Its Financial Restructuring & Capital Structure Changes Expected To Improve Margins? – Major Drivers

Wolfspeed Inc. has reported its results for the first quarter of fiscal year 2025, indicating a period of strategic transitions and adjustments amidst a challenging macroeconomic environment.
The company is emphasizing the transition to a 200-millimeter silicon carbide (SiC) platform, which is seen as critical to its operational efficiency and market leadership.
Wolfspeed aims to optimize its manufacturing processes to lower costs and accelerate profitability—key components of its broader strategy to tap into the growing demand for SiC in electric vehicles (EVs) and other industrial applications.

Meta’s New Moderation Strategy: A Trump-Friendly Game Changer?

Meta Platforms is making headlines once again with its latest overhaul of content moderation policies, signaling a significant shift in how the social media giant manages user interactions and information dissemination.
In a bold move, Meta announced the elimination of its third-party fact-checking program, aiming to “restore free expression” by adopting a crowdsourced “Community Notes” model akin to Elon Musk’s X platform.
CEO Mark Zuckerberg emphasized that the previous system was “too politically biased” and eroded trust, particularly in the United States.

Intel (INTC.US): Exploring a Tough Journey. (II)

By Patrick Liao

Considering of current financial outcome of Intel Corp (INTC US), we cannot but favor Advanced Micro Devices (AMD US).
Currently, Advanced Micro Devices (AMD US) has a more favorable competitive landscape compared to Intel Corp (INTC US).
The competition in PC CPU emphasizes not only performance but also heat dissipation and other techniques related to supply management.

Diodes Incorporated: An Analysis Of Its Automotive Market Expansion & Other Major Growth Drivers

Diodes Incorporated has reported its financial results for the third quarter of fiscal 2024.
The company’s revenue exceeded expectations, reaching $350.1 million, a sequential increase of 9.5% from the second quarter but a decline from $404.6 million in the previous year.
This growth was notably supported by improved demand in Asia, particularly the automotive sector, which rose by 18% and accounted for 19% of product revenue.

Clear Secure Inc.: Expansion Of TSA PreCheck As A Primary Growth Accelerator! – Major Drivers

In Clear’s fiscal third quarter 2024 financial results, the company reported significant advancements and positive momentum across its core strategic areas: enhancing member experience, scaling TSA PreCheck, and expanding Clear Verified.
The company continues to innovate in identity verification, noting strong adoption of its face-first NV (enrollment and verification) hardware, resulting in three times faster processing with improved privacy features.
Clear, a leader in secure identity solutions, is focused on simplifying the travel process and enhancing security.

Broadridge Financial Solutions: Can Its Strategic Acquisitions Further Catalyze Top-Line Growth? – Major Drivers

Broadridge Financial Solutions Inc. reported its fiscal first quarter results for 2025, showcasing a generally positive trajectory with a mix of growth areas and challenges.
The company’s first quarter was shaped by several key elements, notably its recurring revenue growth, strategic investments, and the impact of recent acquisitions.
Broadridge’s first quarter saw recurring revenue increase by 4% in constant currency.

Axcelis Technologies: Will Its Geographical Diversification With A Japan Focus Be A Potential Game Changer? – Major Drivers

Axcelis Technologies’ third-quarter 2024 financial report highlights a mixed performance, with both positive strides and some challenges.
The company reported revenue of $257 million and an earnings per share (EPS) of $1.49, aligning largely with expectations.
This was mainly driven by robust demand in the image sensor market, despite a decline in power and general mature markets.

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Jan 12

Daily Brief Industrials: FuelCell Energy , Nova Technology Corp/Taiwan, Donaldson Co, Evergreen Marine Corp, CSSC (Hong Kong) Shipping Co Ltd, Huntington Ingalls Industries, Kbr Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

FuelCell Energy: Expanding Manufacturing Capabilities To Better Capitalize On Emerging Opportunities! – Major Drivers
Asian Dividend Gems: Nova Technology Corp
Donaldson Company: Industrial Solutions Expansion As A Pivotal Growth Lever! – Major Drivers
Container Shipping: Mean Reversion in 2025, Yes, but to WHICH Mean?
BUY/SELL/HOLD: Hong Kong Stock Update (January 10)
Huntington Ingalls Industries: An Insight Into Its Capital Allocation & Financial Health & Major Growth Drivers
KBR Inc.: Is The Strategic Growth In Sustainable Technologies Solutions (STS) Here To Stay? – Major Drivers

FuelCell Energy: Expanding Manufacturing Capabilities To Better Capitalize On Emerging Opportunities! – Major Drivers

FuelCell Energy recently released its financial results for the fourth quarter and fiscal year-end 2024, highlighting a mix of robust revenue growth and significant restructuring initiatives aimed at positioning the company for future profitability.
Revenue for the fourth quarter rose dramatically by 120% year-over-year, reaching $49.3 million, primarily driven by module sales to Gyeonggi Green Energy (GGE) in South Korea.
Despite this quarterly increase, the full fiscal year 2024 revenue showed a decline compared to the previous year.

Asian Dividend Gems: Nova Technology Corp

By Douglas Kim

Nova Technology Corp is a leading company in Taiwan in integrating water, gas, and chemical systems for high-tech industrial facilities.
Nova Technology provides high dividend payout and excellent dividend yield. From 2019 to 2023, the company’s dividend payout and dividend yield averaged 71.7% and 7.2%, respectively.
Nova Technology generates high levels of ROE. Its ROE improved from 23% in 2021 to 28.7% in 2022 and 30.3% in 2023.

Donaldson Company: Industrial Solutions Expansion As A Pivotal Growth Lever! – Major Drivers

Donaldson Company, a prominent player in the filtration solutions industry, reported robust financial performance in the first quarter of fiscal 2025.
The company’s sales totaled $900 million, reflecting a year-over-year increase of 6%.
This growth was primarily driven by volume expansion, with a marginal pricing and currency benefit contributing to the results.

Container Shipping: Mean Reversion in 2025, Yes, but to WHICH Mean?

By Daniel Hellberg

We expect container shipping profits to begin to revert to historical levels in 2025
Between 2009 and 2019, Evergreen Marine’s mean OpInc margin was negative 0.8%
We believe path to mean industry returns & near-term risks both misunderstood; AVOID

BUY/SELL/HOLD: Hong Kong Stock Update (January 10)

By David Mudd

Hong Kong and China shares have outperformed most Asian markets over the last year. In HK the consumer discretionary sector has lost strength and momentum over the last 4 weeks.
CSSC (Hong Kong) Shipping Co Ltd (3877 HK) was rated BUY after reporting strong results. Analysts have a target price of $2.50 on the stock.
Bosideng International Holdings (3998 HK) has shown earnings growth exceeding revenue growth for the last seven years. Technically, the stock looks weak near term, but analysts project 60% upside.

Huntington Ingalls Industries: An Insight Into Its Capital Allocation & Financial Health & Major Growth Drivers

Huntington Ingalls Industries (HII) recently reported its third-quarter earnings for 2024, presenting a mixed picture of operational performance and future expectations amid challenges.
The company’s reported revenue for the quarter was $2.7 billion, representing a 2.4% decrease from the prior year.
Additionally, earnings per share were down to $2.56 from $3.70 in the previous year.

KBR Inc.: Is The Strategic Growth In Sustainable Technologies Solutions (STS) Here To Stay? – Major Drivers

KBR Inc. demonstrated robust performance in Q3 2024, reflecting double-digit year-over-year growth in revenue and profitability.
Revenue for the quarter increased by 10%, while adjusted EBITDA rose by 18%.
This growth was driven by strategic business expansion and effective cost management.

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The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

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Jan 12

Daily Brief Energy/Materials: Plains All American Pipeline, L.P. and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

Plains GP Holdings: Will Its Bolt-On Acquisitions Strategy Give Them A Competitive Edge! – Major Drivers

Plains GP Holdings: Will Its Bolt-On Acquisitions Strategy Give Them A Competitive Edge! – Major Drivers

Plains All American Pipeline, L.P. (PAGP) reported a strong third quarter for 2024, reflecting continued operational success and strategic initiatives.
The company is anticipated to reach the top end of its adjusted EBITDA guidance for the year, which ranges from $2.725 billion to $2.775 billion.
This performance is largely driven by robust oil volumes from the Permian Basin and efficient handling of natural gas liquids (NGLs).

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jan 12

Daily Brief Consumer: Seven & I Holdings, Pressance Corp, The Walt Disney Co, Marriott Vacations World, Wyndham Hotels & Resorts , frontdoor Inc, McCormick & Company, Topbuild Corp, Cable One Inc and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Last Week in Event SPACE: Seven & I, PA Gooddoctor, Fuji Soft, WH Group
Open House Finally Takes Out Pressance (3254) – Done Deal Done Cheap
Pressance (3254 JP): Open House (3288 JP) JPY2,390 Tender Offer a Done Deal
Disney’s Master Plan For 2025: Ad-Supported Streaming & Hulu+FuboTV Merger Set To Transform the Industry!
Marriott Vacations Worldwide: An Insight Into Its Strategic Expansion
Wyndham Hotels & Resorts: 6 Major Game-Changers Impacting Its 2025 Performance & Beyond! – Major Drivers
Frontdoor’s Explosive HVAC Boom Poised To Catalyze Growth! – Major Drivers
McCormick & Company: An Insight Into Its Digital Transformation
TopBuild Corp: 7 Significant Forces That Will Define Its Success in 2025 & Beyond! – Major Drivers
Cable One Inc.: The 6 Key Drivers Shaping Its Performance in 2025 & Beyond! – Major Drivers

Last Week in Event SPACE: Seven & I, PA Gooddoctor, Fuji Soft, WH Group

Seven & I Holdings (3382 JP)‘s analysts’ call transcript is worth listening to. The math on the takeover maths well. This is a buy on dip. Again.
Those who bought into Ping An Healthcare and Technology (1833 HK)‘s punchy dividend, whether in cash or scrip, the trade has panned out well.
KKR extends its Offer for Fuji Soft Inc (9749 JP). Separately, Bain said it had destroyed confidential data, as requested, but it’s unclear how and when that data was destroyed.

Open House Finally Takes Out Pressance (3254) – Done Deal Done Cheap

Four-Plus years ago, Open House (3288 JP) bought the stake in Pressance Corp (3254 JP) owned by its embattled CEO (who had been arrested for a scandal).
Four years ago, Open House launched a partial tender and capital injection to go to ~65%. A takeout was a matter of time.
That time has come. Today Open House announced a Tender Offer to take Pressance fully-private. This is an easy deal. A done deal. Done too cheap.

Pressance (3254 JP): Open House (3288 JP) JPY2,390 Tender Offer a Done Deal

By Arun George

Pressance Corp (3254 JP) announced a tender offer from Open House (3288 JP) at JPY2,390 per share, a 22.1% premium to the last close.
While the offer is below book value, it represents an all-time high and broadly aligns with the mid-point of the target IFA’s DCF valuation range.
The low minimum acceptance condition (2.3 million or 3.25% ownership ratio) suggests a done deal. The offer runs from 14 January to 26 February (30 business days).

Disney’s Master Plan For 2025: Ad-Supported Streaming & Hulu+FuboTV Merger Set To Transform the Industry!

The Walt Disney Company is making significant strides in 2025, positioning itself for substantial growth and market influence through strategic mergers and innovative streaming initiatives.
Recently, Disney announced a landmark merger between its Hulu + Live TV service and FuboTV, creating the second-largest digital pay-TV provider in North America.
This move not only consolidates Disney’s presence in the live TV streaming market but also leverages FuboTV’s sports-centric audience to enhance Disney’s already robust content offerings.

Marriott Vacations Worldwide: An Insight Into Its Strategic Expansion

Marriott Vacations Worldwide has delivered mixed results in its third quarter 2024 performance, characterized by strategic initiatives aimed at driving growth and efficiency, amidst ongoing economic challenges.
The company reported increased contract sales by 5% year-over-year, with a significant portion driven by first-time buyers, and resort occupancy nearing 90%.
This suggests a strong demand for vacation ownership despite economic pressures faced by consumers.

Wyndham Hotels & Resorts: 6 Major Game-Changers Impacting Its 2025 Performance & Beyond! – Major Drivers

Wyndham Hotels & Resorts recently reported their third quarter results for 2024, showcasing both positive progress and areas of potential concern.
On the positive side, the company displayed robust financial performance, with notable increases in key metrics.
Adjusted EBITDA and earnings per share (EPS) saw a 7% and 10% growth, respectively.

Frontdoor’s Explosive HVAC Boom Poised To Catalyze Growth! – Major Drivers

Frontdoor, Inc. reported a strong third quarter performance in 2024, exhibiting improvement over the previous periods.
A notable achievement was a record gross profit margin of 57%, benefiting significantly from favorable weather and operational enhancements.
Revenue experienced a modest increase of 3% year-over-year, primarily driven by a surge in demand from the company’s on-demand HVAC program, which contributed positively to their non-warranty sales.

McCormick & Company: An Insight Into Its Digital Transformation

McCormick & Company provided a mixed set of results in its third-quarter earnings, balancing its performance across different regions with acknowledgments of ongoing challenges.
Sales for the quarter remained flat in constant currency, indicating no significant changes in pricing but a slight improvement in volume and product mix.
This outcome includes the effects of a recent divestiture, and while total volume growth was positive, it was a modest increase.

TopBuild Corp: 7 Significant Forces That Will Define Its Success in 2025 & Beyond! – Major Drivers

TopBuild Corporation’s third-quarter 2024 earnings reflect a strategic navigation through a challenging market environment, showcasing both achievements and areas of concern that potential investors should evaluate carefully.
TopBuild posted a 3.6% increase in sales, reaching $1.37 billion, demonstrating resilience amidst a slower-than expected housing market and fluctuating mortgage rates.
The company has successfully leveraged acquisitions and pricing strategies across its Installation and Specialty Distribution segments to drive growth, although the organic volume growth remains modest.

Cable One Inc.: The 6 Key Drivers Shaping Its Performance in 2025 & Beyond! – Major Drivers