Daily Brief Equity Bottom-Up: Silicon Wafers & The Looming Leading Edge Supply Crisis and more

• We are upgrading our existing facilities and any discussions with customers at this point are based on the capacity that we believe is possible as a result of such upgrades.
• Demand is likely to exceed supply for more than three years, because of such supply constraints. In terms of the price level,  prices would need to be dramatically higher.
• We have no plans whatsoever to restart the Yoshinogari project. At current price levels, it is not viable. All costs are rising now, with Japan potentially headed for more inflation

• Our 2021 demographic and capacity-growth thesis largely worked, but property-led expansion introduced multi-year lags between capital deployment, occupancy maturation and earnings.
• FY03/2026 headline ROIC is roughly 6.8%; removing property revaluation noise lifts it to 8.1%, while occupancy normalization suggests roughly 9–10%.
• That narrows our original forecasting error but does not erase it: even seasoned-capital returns around 10–11% remain below our former 20% hurdle.

• Asana, Inc. reported second-quarter fiscal 2027 revenue of $216.4 million, up 10% year-over-year and above the high end of guidance.
• Growth was led by core customers spending at least $5,000 annually, which increased 11%, and enterprise customers spending at least $100,000, which grew 16%.
• Dollar-based net retention improved to 97% overall and 98% across core and enterprise customers, supported by healthier seat expansion and multiproduct adoption including AI.

• As expected, a SAMR investigation depressed top-line growth and profitability in Q226 
• Management offered no forward guidance on earnings call, but hinted at headwinds to come
• We believe it may take a few quarters for Trip.com to regain momentum

• Quality Power is moving from a specialist component maker toward a broader high-voltage technology platform spanning reactors, instrument transformers, power electronics and insulators.
• Q1 FY27 total income rose 32.1% YoY; the group order book reached Rs. 1,945.5 crore, extending visibility into FY28.
• Growth visibility has strengthened, but acquisition accounting, Turkey’s hyperinflation and a demanding valuation increase the importance of organic growth and operating cash flow.

• ATOSS Software SE is a premier European workforce management (WFM) software provider with a 20-year track record of record revenues and earnings, driven by a highly successful transition toward a high-margin, recurring Cloud/SaaS business model (>70% recurring revenue).
• The company commands a defensible economic moat built on unmatched domain expertise in complex European labor regulations, works council rules, deep enterprise integration (including premium SAP endorsement), exceptional customer retention (cloud churn <3%), and net retention rates above 115%.
• ATOSS maintains a pristine balance sheet with zero financial debt, best-in-class EBITDA margins (~38-40%), robust free cash flow generation (>95% cash conversion), and strong shareholder capital return illustrated by a 27.3% 5-year dividend CAGR and a 2.52% dividend yield.

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• Ondas has taken another major step in expanding its autonomous defense platform through the acquisition of Israel-based GATE Technologies and affiliated Bron Technologies for $205 million.
• The transaction comes as Ondas aggressively scales its exposure to Precision Strike, Counter-UAS, persistent intelligence, and autonomous defense systems under its broader One Ondas strategy.
• GATE manufactures Electronic Safe & Arm Devices, or ESADs, and advanced electronic fuzing systems used in UAVs, loitering munitions, missiles, and rockets, while Bron adds manufacturing capacity in Poland and access to European defense customers.

• PT Indonesia Fibreboard Industry Tbk (IFII IJ) is a leading integrated wood-processing player in Indonesia, specializing in Medium-Density Fibreboard (MDF), High-Moisture-Resistant (HMR) boards, and veneer, supported by a scale facility in South Sumatra with ~450,000 m³/year capacity and strategic backing from the ADR Group and Japan’s SMB Kenzai Co., Ltd.
• The company demonstrates superior profitability and cash generation post-Line 2 commissioning, delivering 31-34% gross margins, robust EBITDA margins consistently exceeding 31-35%, and free cash flow generation exceeding IDR 300 billion in FY24 and FY25.
• Trading at an undemanding valuation of 5.5x EV/EBITDA, 1.5x P/B, and 13.7x P/E with a robust net cash balance sheet and a 3-year dividend CAGR of 40.10%, IFII offers institutional investors a defensive, high-cash-conversion exposure to regional timber processing and export recovery.

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• Ambarella, Inc. reported its financial results for the second quarter of fiscal year 2027 with revenue reaching $108.1 million, slightly above the midpoint of its guidance and representing increases of 7.7% sequentially and 13.2% year-over-year.
• The company’s performance was driven by record edge AI revenue and growth in both its Internet of Things (IoT) and automotive markets, particularly from commercial vehicle applications.
• Automotive revenue slightly outpaced IoT growth, and non-GAAP earnings per share stood at $0.18.

• UiPath Incorporated reported its second quarter fiscal 2027 results with a 12% year-over-year increase in annual recurring revenue (ARR) reaching $1.938 billion and 13% revenue growth to $410 million.
• Normalizing for foreign exchange (FX) impacts, revenue growth was approximately 16%.
• The company continued its trend of GAAP profitability for the fourth consecutive quarter, with GAAP operating income improving to $32 million from a prior year operating loss, and achieved a non-GAAP operating margin of 22%, up over 400 basis points year-over-year, driven by operational efficiencies and disciplined execution.