Daily Brief Equity Bottom-Up: Himax Sees Chinese Automakers Far Ahead in Adopting Touch Displays; CoPackaged Optics Key for AI/HPC and more

• Himax 4Q24 Results Show Auto Display Surge — Structural Growth Story Visible with Touch Panel Usage in Vehicles Soaring
• China vs. the Rest of the World: Who’s Moving Faster? China Automakers Far Ahead in Display Sophistication
• Himax on Co-Packaged Optics (CPO) — A Critical New Technology for AI and HPC Processing

• In China, travelers grew by 13% YoY in 4Q24 and 15% in 2024, according to the National Bureau of Statistics.
• We expect total revenue will grow by 19% YoY in 4Q24 and 2024.
• We are confident in the company’s financial performance, but the stock price is overvalued.

• Groupon is a lead generation tool for local service businesses that offers discounted deals.
• The speaker, from the hedge fund Windward, believes Groupon presents a highly asymmetric and convex investment opportunity with potential for a 5 to 1 risk-reward ratio.

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• Illumina, a leading genomic sequencing company, reported its financial results for the fourth quarter of 2024, marking a slight revenue increase of 1% year-over-year to $1.1 billion.
• This growth was primarily driven by high throughput sequencing consumables as the company continues to shift its customer base towards its new NovaSeq X series of instruments.
• The company placed 91 NovaSeq X instruments in the quarter, reaching an installed base of 630, and enjoyed a robust pull-through performance, averaging $1.3 million per system in 2024.

• Genpact Limited reported a strong performance in the fourth quarter of 2024, with revenue reaching $1.25 billion, reflecting a 9% year-over-year increase.
• The company showcased a particularly impressive growth in their Data-Tech-AI segment, which rose by 12% year-over-year, showcasing the potential and growth of this sector within the organization.
• Additionally, Digital Operations saw a 6% year-over-year increase, indicating strong demand across their business segments.

• Apple may move iPhone assembly to Indonesia to comply with local content rules and sales ban, shifting focus from Vietnam to India
• India’s AI ambitions hindered by GPU shortages and high costs, while 5G market projected to grow significantly by 2025
• BYD reveals ‘God’s Eye’ smart driving system with budget-friendly aims, as Micron set to challenge Samsung in HBM3E market

• Bank Rakyat Indonesia management painted a relatively positive picture of improvements across its microloan portfolio in 2H2024, with strong growth in recoveries during the year.  
• Loan growth was driven by corporate and consumer loans, as the bank slowed micro and small-sized loan growth with ongoing restructuring, which will continue in 2025 and front-loaded in 1Q2025. 
• Bank Rakyat Indonesia remains unique in its exposure to micro and ultra-micro lending in Indonesia, where growth should resume in 2025. Foreign ownership and valuations stand at 15-year lows. 

• Kilburn Engineering’s Q3 FY25 revenue rose 25.1% YoY to ₹911 million with EBITDA up 30.1%, driven by strategic acquisitions and a robust order backlog exceeding ₹3,600 million.
• Robust financials, an expanding order book, and targeted acquisitions enhance growth prospects and operational efficiency, solidifying Kilburn Engineering’s market position.
• Investors gain confidence as Kilburn Engineering’s disciplined execution and diversified strategy signal sustainable long-term revenue and margin expansion.

• Ralph Lauren’s third-quarter fiscal year 2025 results reflect a blend of positive momentum and strategic growth, tempered by an acknowledgment of ongoing market challenges.
• The company reported a double digit revenue increase, significantly surpassing its own expectations across all geographies, indicating robust brand momentum and effective strategic investments, particularly noticeable during the peak holiday season.
• This was facilitated by an agile global supply chain that successfully met heightened consumer demand.

• We have visited three supermarkets in Shanghai, looking for Haitian Sauces.
• We believe Haitian is obviously the top brand among soy sauces.
• However, there are many competitors and Lee Kum Kee is the most important.