In today’s briefing:
- Taiyo Yuden (6976): A Slightly Different Path to Massively Higher Margins
- Taiwan Tech Weekly: TSMC’s Arizona Surprise – 2nm by 2026?; Signs of Hyperscaler Growth Acceleration
- Ferrari (RACE US): Deceleration in Q2 FY25, But Confident On Future Growth
- Laopu Gold (6181.HK) – The Business Model, the Concerns, the Valuation Outlook
- ASE Technology: Expanding Globally & Tackling Geopolitical Risks & Power AI Innovation!
- M&B Engineering Ltd. IPO Analysis
- The Beat Ideas: Thirumalai Chemicals – A ₹2,000 Cr Capex Bet on the Next Growth Cycle
- T Hasegawa (4958 JP): Q3 FY09/25 flash update
- Sambhv Steel: Anchor Lock-In Opens, Bet on Capacity Expansion, Debt Reduction & Value Addition
- Business Breakdown: Pokarna Limited, A Niche Quartz Player Facing Challenge Due to US Tariff
Taiyo Yuden (6976): A Slightly Different Path to Massively Higher Margins
- Taiyo Yuden underperformed its peers in electronic components by 29% over the past year, but its change in operating profit margin should outperform peers by 68% in the current year.
- Exposure to the U.S. is less than 7% of direct sales, but probably 25% including indirect exposure. Still, based on supply/demand analysis, we think Yuden is probably tariff proof.
- While rivals have prioritized high-margin device modules to offset component sales declines, Yuden doubled down on its core capacitor and inductor strengths and appears to be coming out ahead.
Taiwan Tech Weekly: TSMC’s Arizona Surprise – 2nm by 2026?; Signs of Hyperscaler Growth Acceleration
- U.S. 2nm Production May Begin Sooner Than Expected — Is TSMC Responding to Unprecedented N2 Demand?
- Hyperscalers 2Q25: Revenue Growth Accelerates, Cloud Revenues Accelerate, Capex Higher
- TechChain Insights: Taiwan’s Battery Cell Moment? USA & EU Supply Chain Under Strategic Pressure
Ferrari (RACE US): Deceleration in Q2 FY25, But Confident On Future Growth
- Ferrari N.V. (RACE US) reported Q2 FY25 revenue and earnings growth of 4.4% and 3% (a slight miss on analysts’ estimates) due to increased tax rates and slower growth.
- Management is confident of meeting its conservative guidance for FY25, projecting baseline revenue and EPS growth of 5% and 2% YoY.
- The stock trades at 41.6x FY25 PE and 24x EV-EBITDA. Ferrari N.V. (RACE US) continues to maintain its unique pricing power position due to its loyal customer base.
Laopu Gold (6181.HK) – The Business Model, the Concerns, the Valuation Outlook
- The value of Laopu lies in its innovation in business model,successfully breaking away from the low-profit attribute of the industry by following the pricing and operation methods of luxury goods.
- However, Laopu cannot enjoy the valuation system of luxury brands because it cannot “escape” gold price cycle.So, when valuation of Laopu approaches that of luxury brands, it has overvaluation risks.
- Current valuation has priced in overseas expansion, which however isn’t a done deal.During upward cycle of gold prices,it’s easy to optimistically linearly extrapolate Laopu’s growth potential.Valuation faces downward revision risk
ASE Technology: Expanding Globally & Tackling Geopolitical Risks & Power AI Innovation!
- ASE Technology Holding Co., Ltd. delivered a robust performance in the second quarter of 2025, with advancements in several key business segments contributing to the company’s overall growth.
- The company reported an unconsolidated revenue increase of 9% year-over-year and 2% on a sequential basis, expressed in new Taiwan dollars.
- On a U.S. dollar basis, revenues grew by 7% sequentially and 11% annually.
M&B Engineering Ltd. IPO Analysis
- M&B Engineering, a leader in the PEB space, launched a INR 650 crore IPO with a price band of INR 366-385, opening July 30, 2025.
- The company will use the INR 275 crore fresh issue proceeds for capital expenditure to expand manufacturing facilities, upgrade technology, and repay certain borrowings.
- Growth is fueled by 60% capacity expansion by FY28 and a booming PEB market; valuation appears reasonable given its high PAT CAGR of 53%.
The Beat Ideas: Thirumalai Chemicals – A ₹2,000 Cr Capex Bet on the Next Growth Cycle
- Thirumalai Chemicals is nearing completion of two transformative capex projects in Dahej (India) and West Virginia (USA) set to expand capacity by over 130,000 TPA across commodity and specialty chemicals.
- These investments position TCL to capture demand in both domestic import-substitution and underserved global food ingredient markets, while reducing dependency on cyclical PAN margins.
- The company is transitioning from a commodity-heavy profile to a more diversified, global specialty player, unlocking long-term margin expansion and reducing volatility in earnings.
T Hasegawa (4958 JP): Q3 FY09/25 flash update
- Revenue increased 3.5% YoY to JPY54.5bn, with major subsidiaries in the US, China, and Malaysia contributing growth.
- Operating profit decreased 3.3% YoY to JPY7.2bn due to higher SG&A expenses, despite revenue growth and improved cost ratio.
- Flavor Division revenue rose 4.4% YoY to JPY48.7bn, while Fragrance Division revenue declined 3.3% YoY to JPY5.8bn.
Sambhv Steel: Anchor Lock-In Opens, Bet on Capacity Expansion, Debt Reduction & Value Addition
- In Sambhv Steel Tubes (SAMBHV IN), the anchor investor lock-in expiry ends brought expected selling pressure, testing the stock’s resilience and investor conviction in its fundamentals.
- The company posted record Q1 revenue and profit, driven by strong volumes and margin expansion from its strategic value-added product focus.
- Management guides for sustained 12-13% EBITDA margins, backed by aggressive brownfield and greenfield expansions to capture future market demand.
Business Breakdown: Pokarna Limited, A Niche Quartz Player Facing Challenge Due to US Tariff
- Pokarna is India’s leading quartz exporter, leveraging italian Bretonstone technology to deliver industry-leading margins, growth in Natural Quartz segment.
- Company is doing major capex worth Rs. 440Crs, that will add an additional 500Cr in topline once fully operational.
- The company is facing demand challenges due to the US 25% Tariff since more than 80% revenue is coming from the US.
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