Daily Brief Equity Bottom-Up: SK Hynix Will Derive ~50% of Revenues from AI in 2025. Why Is the Stock Trading at 6x 2025 EPS? and more

• SK hynix derived ~25-30% of revenues from AI in 2024 (HBM, LP-DDR, eSSD). AI revenues will double in 2025. SK hynix’s lead, both roadmap, manufacturing, qualifications extends to 2026.
• AI high growth also allows SK hynix to lower its exposure to commodity PC, Mobile, consumer segments. Hence, margins likely continue to increase in 2025-26.
• Sk hynix’s lead over Samsung is sustainable for at least 2025-26.  AI-related ASP / margins aren’t cyclical, unlike commodity memory. The stock trades at a miserable 6x 2025 EPS.

• Q3 net sales reached ¥652,153 million, up 1.0% quarter-on-quarter, driven by strong demand for power generators and battery energy storage systems. Operating profit of ¥54,536 million (-10.1% QoQ) missed expectations.
• There has been a notable vibe-shift since Kishida took over as CEO – more focus on operational improvements and hopefully margin accretion.
• Strategic M&A remains a driver and the Makino Milling deal makes sense. At 14x EV / EBIT, the stock should be on the radar of value or GARP investors

• Evo Group cash flow was around 165 million
• Paladin had a 12-day shutdown in November, impacting production
• Water challenges and stockpile grade affecting Paladin’s guidance and operations

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• Kaspi is a leading financial technology company in Kazakhstan
• Offers seamless ecosystem of payments, e-commerce, and financial services
• CEO and co-founder Mikhail Lamsada transformed Kaspi into a dominant platform

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

• Chiba Bank shows good gains in net interest income through 1H25 YoY
• There should be more of this with rising BOJ rates during 2H25.
• Flow through to net profit can be strong, given credit metrics.

• Hogy Medical (3593 JP) reported flat sales of ¥30B in 9MFY25. Sales of surgical kit products rose 3.2%, to ¥20B, of which Premium Kit sales climbed 7.8%, to ¥13.2B.
• Higher costs dented operating margin by 40 bps while net profit rose 5% YoY to ¥2.7B due to an extraordinary gain from sale of investment.
• The company reiterated guidance for FY25 of a rise in sales of 5% to ¥40.9B, with profits also witnessing double digit growth.

• Schlumberger’s Q4 revenue grew 3.3% YoY and beat estimates by 1.1%, while its net profit fell by 1.6% YoY but its EPS exceeded estimates by 2.5%.
• In fiscal 2024, SLB’s revenue rose 9.5% YoY, with net profit up 6.1%. Full-year revenue and EPS exceeded estimates by 0.2% and 0.1%, respectively.
• SLB reported USD 850 million in 2024 revenue from non-oil and gas operations and expects growth from these segments to outpace core business growth in 2025.

• TMDX is a high-growth med-tech company specializing in organ transplant therapy
• Despite expensive traditional valuation metrics, TMDX offers a compelling investment opportunity
• Company recently became GAAP profitable and free cash flow positive, indicating a bright future ahead

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We are gradually building a high-conviction coverage of ideas for the mid and small-caps in the Philippines.
• We set criteria for high ROCE, reasonable growth (10-15% YoY), strong balance sheets, and reasonable capital allocation (dividend yields), all ingredients for being multi-baggers.
• We preview earnings for our top picks: DigiPlus Interactive (PLUS PM), Ginebra San Miguel (GSMI PM), The Keepers Holdings (KEEPR PM), and the Philippine Stock Exchange (PSE PM) 

• Scape Australia is investing in student housing by launching a $3.8 billion fund to transform the sector.
• Indian company CtrlS is expanding their data center portfolio by building a fourth facility in Hyderabad.
• Despite a Q4 slump, Singapore’s real estate investment increased by 35% in 2024, according to Savills.