Daily Brief Equity Bottom-Up: [Alibaba (BABA US and more

• Alibaba reported C4Q24 top line in-line with our estimate and consensus, but non-GAAP NI beat our estimate/consensus by 12%/11%, attributable to cost control and AntFin’s profitability improvement;
• But what drives the stock was the strong performance in AliCloud and an articulation of a clear investment logic on Generative AI (GAI), 
• While the AI inflection point has arrived earlier than we expected, we remain eying for the domestic e-commerce turnaround with Jiang Fan at the helms. 

• TSMC: +17.2% Premium; Wait for Lower Levels Before Going Long
• UMC: -1.9% Discount; Can Consider Going Long the Spread at Current Level
• ASE: -0.6% Discount; Discount is Opportunity to Long the Spread

• Trip Com, Contemporary Amperex Technology and Xiaomi all hit fresh highs in EM fund ownership.
• Rotation in all three was among the most positive across all China stocks, with all measures of fund ownership moving higher.
• Conviction opens from GIB, Putnam and Aubrey we among the funds driving ownership higher.

• Manappuram Finance is a leading Indian NBFC specializing in gold loans, offering financial services to lower socio-economic backgrounds with 5,286 branches across India.
• The RBI had barred the microfinance arm Aashirwad Micro Finance from sanctioning and disbursing loans due to non-compliance.  Company is planning for  IPO and intended to raise INR 1500 Crore.
• Manappuram is committed to growing its secured lending portfolio, including gold loans and other secured assets and anticipates overall growth of 15%-18% in the consolidated loan book.

• Refocusing on the core business with the promoter stepping back on the board & demerger. Also focusing on value-added products and reducing debt from rights issues & internal accruals.
• Solara Active Pharma Sciences (SOLARA IN) had issues in getting US FDA approvals for the Visakhapatnam facility & pricing pressure on the key product Ibuprofen.
• The CRAMS and high-potent API segments have the potential to generate significant value over the next 4-5 years through the addition of new customers.

• Luckin reported C4Q24 revenue 6%/1% higher than our estimate/consensus, and non-GAAP operating profit 11%/38% higher than our estimate/consensus, driven by SSSG recovery and cost material savings;
• After turning around same-store-sales-growth (SSSG) via price hike in C3Q24, Luckin finetuned the cup sales to price ratio to reach an optimal point in C4Q24, 
• We upgrade Luckin from UR into BUY rating and set new TP at US$40.  

• Duck projects and operations, specializing in large-scale builds
• Jeff Quartermain leads Perseus Mining, discussing Predictive stake and valuation
• Emphasis on creating value and diversification in mining investments

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

• Crocs, Inc. recently reported its financial performance for the fourth quarter and full year of 2024.
• The company experienced steady growth, achieving $4.1 billion in total revenues for the year, a 4% increase over the previous year.
• Its adjusted gross margin improved by 230 basis points to 58.8%, while the adjusted operating margin was recorded at 25.6%.

• Keppel is an asset manager and operator with business in infrastructure, real estate and connectivity
• The company is undergoing transformation from an asset-heavy conglomerate to an asset light manager with strong recurring income
• We also like the strong capital management and its focus on total shareholder returns, valuation is not demanding

• Global EV sales in 2024 were strong, with forecasts for 2025 looking promising as well, showcasing the growth of the electric vehicle market.
• Asus and Gigabyte secure large AI server orders from Nvidia, highlighting efforts to boost US manufacturing and strengthen partnerships in the tech industry.
• iPhone 16e price hints at a move away from the budget market, indicating a potential shift in Apple’s pricing strategy for future phone releases.