In today’s briefing:
- Baidu Inc.: When Will Its Efforts Towards Generative AI
- FnGuide Semiconductor Top10 Index Rebalance Preview: Big Moves Lead to Changes in Forecast
- Plover Bay Technologies (1523.HK) – A Milestone Year with Strong Growth and Expanding Opportunities
- OneConnect Financial (6638 HK/OCFT US): Negative EV Play Draws an Opportunistic Offer from Ping An
- OneConnect Financial (6638 HK/OCFT US): Ping An’s Fair NBIO
- Arista Networks: Can its Cloud Titan Engagement & Expansion Bolster Growth In Foreseeable Future?
- Pre-IPO We Doctor Holdings – The Good Story of AI May Not Turn Things Around
- Tech Supply Chain Tracker (04-Mar-2025): HP cuts 2k jobs, offshores China manufacturing for NA by 4Q25
- Shift4 Payments: Why Its Unified Commerce Platform Expansion Is Driving Our Bullishness!
- Cadence Design Systems: AI-Powered EDA Tools Are Revolutionizing Chip Design!
Baidu Inc.: When Will Its Efforts Towards Generative AI
- Baidu’s fourth-quarter and full-year 2024 financial results reveal a company navigating both challenges and opportunities, driven by its ongoing transformation into an AI-centric entity.
- The reported total revenues for the fourth quarter amounted to RMB 34.1 billion, a 2% decrease year-over-year, while full-year revenues were down by 1%, at RMB 133.1 billion.
- Despite these slight declines, Baidu Core’s revenue performance was stable, increasing by 1% for both the fourth quarter and full year.
FnGuide Semiconductor Top10 Index Rebalance Preview: Big Moves Lead to Changes in Forecast
- With the averaging period for the April rebalance commencing today, we forecast 2 changes for the FnGuide Semiconductor Top10 Index at the upcoming rebalance.
- Based on the passive assets tracking the index, there will be between 0.65-1x ADV to buy in the adds and between 0.5-1.7x ADV to sell in the deletes.
- The big rally has taken Gemvax & Kael into inclusion zone while underperformance leads to ISC Co and Techwing dropping out of inclusion zone.
Plover Bay Technologies (1523.HK) – A Milestone Year with Strong Growth and Expanding Opportunities
- Plover Bay Technologies (1523.HK , “Plover Bay”) with a market cap of approximately USD 739 million, experienced another stellar year with its FY24A annual results, showcasing a notable 24% revenue increase, exceeding the USD 100 million threshold (also known as the “valley of death ”) to reach USD 117 million, while also realizing a 36% YoY growth in net profit, amounting to USD 38 million.
- This success is complemented by strategic partnerships, and ongoing innovation.
- With deepening collaborations, an expanding product line-up, and an emphasis on recurring revenues, Plover Bay is well-positioned for sustained growth in 2025 and beyond.
OneConnect Financial (6638 HK/OCFT US): Negative EV Play Draws an Opportunistic Offer from Ping An
- Oneconnect Financial Technology (6638 HK) disclosed a preliminary non-binding privatisation offer from Ping An Insurance (H) (2318 HK) at HK$2.068 (US$7.98 per ADS), a 72.33% premium to the undisturbed price.
- Despite the hefty premium, the offer is opportunistic as it values OneConnect around net cash and is at a material discount to historical trading ranges.
- If a binding proposal materialises, the offer price will not be increased. A high minority participation rate could be an issue for the vote.
OneConnect Financial (6638 HK/OCFT US): Ping An’s Fair NBIO
- Dual-Listed OneConnect Financial Technology (6638 HK/OCFT US), a digital retail banking/commercial banking/ digital insurance play, has announced a non-binding proposal from Ping An, OneConnect’s controlling shareholder with 32.12%.
- Ping An is offering, by way of a Scheme, HK$2.068/share, or US$7.98/ADS, a 72.33% premium to last close, and a 131.66% premium to the 30-day average. The price is final.
- What now? Back in OneConnect’s boards’ court whether to engage or not. Which they should. No competing Offer will emerge.
Arista Networks: Can its Cloud Titan Engagement & Expansion Bolster Growth In Foreseeable Future?
- Arista Networks’ results for the fourth quarter of 2024 reflect significant strides and some challenges in various segments.
- The company reported revenue of $1.93 billion for the quarter, contributing to an annual growth of approximately 19.5%, surpassing its initial forecast of 10-12% amidst robust AI-related demand.
- This performance helped achieve a non-GAAP operating margin of 47.5%, marking a solid financial standing.
Pre-IPO We Doctor Holdings – The Good Story of AI May Not Turn Things Around
- We Doctor’s business structure has undergone significant changes. Its positioning has become the AI-enabled healthcare solutions provider. The current business model of We Doctor is To G (To Government) model.
- Whether We Doctor can replicate Tianjin model in other cities is uncertain because it may not have deep connections/resources in new cities/regions. Profit model of AI+ healthcare isn’t yet clear.
- We Doctor’s Pre-IPO valuation has reached US$6.7 billion, which is too expensive. Reasonable valuation could be just US$1-2 billion, and should be lower than Ping An Good Doctor.
Tech Supply Chain Tracker (04-Mar-2025): HP cuts 2k jobs, offshores China manufacturing for NA by 4Q25
- HP plans to cut 2,000 jobs and shift 90% of its manufacturing from China to North America by the fourth quarter of 2025.
- Hushan successfully transforms car door handles into profitable aftermarket products, carving out a niche in the market.
- IBM closes its research facility in China and lays off 1,800 employees, while companies like Jabil, Aequs, and Tata export Indian-made Apple components to China and Vietnam.
Shift4 Payments: Why Its Unified Commerce Platform Expansion Is Driving Our Bullishness!
- Shift4 Payments Inc. reported robust financial results for the fourth quarter of 2024, setting records across several key performance indicators.
- The company announced a 49% year-over-year increase in end-to-end payment volumes to $47.9 billion and a 50% rise in gross revenue less network fees, amounting to $405 million.
- Adjusted EBITDA increased by 51% to $205.9 million, while adjusted free cash flow saw a significant rise of 78% to $134 million.
Cadence Design Systems: AI-Powered EDA Tools Are Revolutionizing Chip Design!
- Cadence Design Systems Inc. reported strong results for the fourth quarter of 2024, with notable achievements in revenue and operating margins.
- The year concluded with a record backlog of $6.8 billion, reflecting heightened demand for Cadence’s AI-driven chip-to-systems portfolio and the expanded application of its AI solutions in semiconductor innovation.
- The company observed exceptional momentum in its partnerships, including with NVIDIA, Qualcomm, and Marvell, highlighting increased adoption of its AI-powered products such as Cadence Cerebrus, SimAI, and Allegro X AI.
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