Daily Brief Equity Bottom-Up: Taiwan Tech Weekly: Why Many Tech Companies Could Soon See Their Chip Costs Rise Substantially and more

• As Chips Move to 3nm and 2nm Designs, Tech Companies Could See a Sharp Increase in Their Chip Manufacturing Cost
• Intel (INTC.US): AMD to Submit Foundry Orders to Intel? We Think It’s Highly Unlikely. 
• HBM Stocks Will Keep Running (Micron, SK Hynix), It’s Just the Beginning 

• Multi-National and multimodal transportation company with well diversified transportation business operating from Singapore.
• ROE has started improving from low base of below 6% to around 8% over the last couple of years
• Underlying business is stable. Dividend yield at 5.5% is better than Singapore market 

• After months of going nowhere, Astroscale shot up more than 20% in the two trading days following the election of defense hawk Sanae Takaichi as president of the LDP.
• Astroscale made a small gross profit last quarter, but needs a rising flow of contracts and subsidies in order to turn profitable at the operating and net levels.
• At ¥825, the stock price is 38% below the ¥1,326 high reached just over a year ago. If Takaichi becomes prime minister, the chances of regaining that high would improve.

• World’s Largest Footwear Manufacturer: Yue Yuen is the global leader in athletic and casual footwear manufacturing, producing for top-tier brands like Nike, Adidas, and New Balance. Its immense scale provides significant competitive advantages.
• Dual Business Model with Integrated Retail: The company operates a core manufacturing (OEM/ODM) business and a significant sportswear retail and distribution arm in Greater China, Pou Sheng International (3813 HK). This provides diversification and end-to-end solutions for its brand partners.
• Challenging Near-Term Outlook but Attractive Valuation: While facing headwinds from rising labor costs, geopolitical uncertainties, and soft consumer demand in its retail segment, the company’s valuation appears compelling. Strong recent growth in net income and a high dividend yield present a potentially attractive risk/reward profile for long-term investors.

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• 94% of Bikaji’s revenue now falls under favorable GST slab due to the recent rate cut, positioning it to gain significant market share through lower consumer prices.
• The company is strategically passing on the tax benefit to consumers via higher grammage and lower MRP, which is expected to drive an incremental 2-3% volume growth while sustaining margins
• The company has the immediate manufacturing headroom and distribution reach to capture the expected volume surge without major, immediate capital expenditure.

• Dabur India Ltd (DABUR IN) ‘s business is contracting in volume and value, with declining margins, masking structural weakness through recurring excuses and shifting narratives across seasons and quarters.
• Disclosure standards have been reduced; management hides key metrics citing “competitive sensitivity,” obscuring true demand, volume trends, and domestic business performance.
• Q2 guidance cut to mid-single-digit growth confirms prior double-digit guidance was untenable, exposing weak underlying demand and the market’s slow recognition of systemic underperformance.

• Makes branded and contract manufacturing snack food and confectionaries in Melaka Malaysia
• Super Ring is its own brand which is very popular among customers for its unique flavour
• Company is expanding capacity indicating the future revenue and profit grow

• On Holding AG is a high-growth premium sportswear brand that has rapidly gained market share through innovative products, particularly its patented CloudTec® cushioning technology, and effective marketing strategies.
• The company demonstrates a strong financial profile with impressive revenue growth, high gross margins, and a robust balance sheet with more cash than debt, enabling significant reinvestment into global expansion and product diversification.
• Key risks to the investment thesis include a high valuation that prices in significant future growth, intense competition from established industry giants, and potential margin pressures from currency fluctuations and tariffs.

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• Shares of Fair Isaac Corporation surged in recent sessions as investors digested a transformative pivot in the company’s pricing strategy and market positioning.
• The catalyst?
• FICO is testing a new pricing model that directly undermines the influence of the three major credit bureaus — Experian, Equifax, and TransUnion — by sidelining them in score delivery and distribution.

Key points (machine generated)

• Modern Dental (3600) manufactures and distributes dental prosthetics with a potential for over 15% CAGR from a share price of HKD 4.35.
• The company generates approximately 75% of its revenue from developed markets despite its primary manufacturing facility being in Shenzhen, China.
• Modern Dental is well-positioned to benefit from the growing global reputation of Chinese manufacturers for quality and competitive pricing.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.