Daily Brief Equity Bottom-Up: Intel @ CES 2025. Doubling Down On The AIPC & Other Fantastical Tales and more

• Intel is pinning much hope on the success of the AIPC, a venture in which they are tied at the hip with Microsoft, which calls it a CoPilot+ PC
• The AIPC/CoPilot+ PC concept is struggling to gain traction. They will sell in volume, but only because buyers will have limited alternatives available. Ultimately, we see AIPCs cannibalising non-AIPCs
• Intel’s performance was underwhelming to say the least, but at the same time, not in the least bit surprising. Earnings coming on January 23. 

• Dell’s switch to AMD processors for commercial PCs in CES 2025 poses a threat to Intel’s market dominance in the industry.
• MediaTek and Nvidia’s collaboration to develop advanced supercomputer chips at CES 2025 promises enhanced performance and capabilities.
• US DoD banning Tencent, CATL, and CXMT in response to escalating tech tensions, and Toyota’s inauguration pledge to Trump raising concerns.

• According to our NAV valuation analysis, it suggests NAV per share of 25,624 won for DN Automotive which is 35% higher than current price.
• We assumed DN Automotive’s estimated post IPO stake of DN Solutions (72.2% stake) would be worth about 4 trillion won. 
• We used a very large holdco discount rate of 70%. DN Automotive is not a pure holdco company but a quasi holding company.

• Latest TSMC Price Hike — Introducing the $18,000 Wafer; Supports The Case That Management Margin Guidance is Overly Conservative
• Mover Over Apple, Nvidia Could Become TSMC’s Largest Customer in 2025E
• SK Hynix(000660.KS): Insisting on HBM Technology and Continuing to Surpass Samsung in Net Earnings 

• For Fosun, every major capital operation is the result of careful consideration after a long time. If it is a deal that Mr. Guo fully supports, there’s basically no problem.
• For the privatization, the board of directors of Henlius has no special opposition. We think that this privatization would have no impact on the operation of Henlius in the future,
• As the phenomenon of undervaluation of Henlius is difficult to fundamentally change, the Cancellation Price is attractive for most investors. There’re risks if choosing Share Alternative. Cash Alternative is preferred. 

• Amer Sports, owned by ANTA Sports, is focusing on expanding in the Chinese market, particularly through the Arc’teryx brand
• New store openings in China are expected to drive revenue and EBIT growth for Amer Sports
• Arc’teryx faces stiff competition in the outdoor apparel market, with its technical attributes not standing out as much as expected, despite surpassing Canada Goose in revenue and having a strong presence in China

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• Ryobi is a leading Japanese manufacturer of die casts, predominantly serving the global auto industry, with an estimated top domestic share of about 20%.
• As the transition out of internal combustion engines (ICE) and into battery electric-powered vehicles (BEV) gathers pace, Ryobi is well placed to capitalize on the demand for lightweight aluminum auto parts, including chassis, e-axle, and battery cases, door frame hinges, and many more parts.
• Although meeting demand generated by this once-in-a -lifetime industrial transformation requires capital expenditures, the company is also focused on improving operating margins over the long term and enhancing shareholder returns, keen to raise its PBR to 1x.

• Daiseki Co.’s cumulative Q3 sales decreased 6.7% YoY to JPY50.0bn, exceeding the forecast of JPY49.6bn.
• DES’s sales declined 27.6% YoY, impacting consolidated operating profit, which decreased 6.8% YoY to JPY11.0bn.
• FY02/25 forecasts revised upward: sales JPY66.0bn, operating profit JPY14.6bn, with OPM increasing by 0.7pp YoY.

• We are reiterating our Buy rating, $20 price target and projections for Lands’ End as we look forward to 2025.
• We believe, after an impressive return to profitability in FY24, Lands’ End management is poised to continue to build on their winning business model drivers (improved product, marketing and customer reach, Outfitters, international and licensing) to drive further upside into FY25 and amply demonstrate the power of Lands’ End to leverage a quintessential and trusted American brand to drive compelling returns.
• As such, we reiterate our Buy rating and $20 price target for LE.

• Mitsubishi Research Institute (MRI) provides consulting services, as well as research and analysis, for the financial sector, government agencies, and the private sector.
• Profitability is poised to expand through acquiring new clients, growing recurring business, and focusing on profitable projects by moving up the value chain towards upstream consulting within the current medium-term plan (FY9/24-FY9/26).
• MRI aims to achieve 12% ROE by FY9/26 with such initiatives (7.5% FY9/24). Having a strong balance sheet with a net cash position, MRI plans to increase capital allocation to M&A, driving non-organic growth.