In today’s briefing:
- What We’ve Got on Samsung Electronics’ Value-Up Disclosure
- The US-China Trade War Is Likely to Split the Semiconductor Industry into Two Groups.
- Xiaomi’s Smartphone Share Gain in Japan Is a Harbinger of Good Things to Come
- Calendar Effects Trading Strategy: Combining TOY and Santa Rally Effects for Enhanced Returns
- Enfusion Inc.: Leveraging Managed Services for Faster Monetization To Change The Game! – Major Drivers
- Euronet Worldwide: Money Transfer Growth and Strategic Partnerships Driving Our Optimism! – Major Drivers
- Genpact Limited: An Insight Into Its Data-Tech-AI Solutions & Other Major Drivers
- EXL Service: An Insight Into Its Efforts Towards Expansion in Data Analytics & Major Growth Drivers
- Tech Supply Chain Tracker (28-Dec-2024): TSMC starts Kumamoto fab amid 3rd fab expansion uncertainty.
- Advanced Energy Industries Drives Semiconductor Revenue Boom: Next-Gen Platforms Set for 2025! – Major Drivers
What We’ve Got on Samsung Electronics’ Value-Up Disclosure
- Yesterday, the FSC pushed for value-up policies, but the real buzz was about Samsung Electronics hinting at rolling out its own value-up plan soon.
- Samsung may raise its dividend payout from 50% to 60% and could issue a special dividend if semiconductor results improve or FCF exceeds expectations.
- Samsung’s value-up disclosure may not cause short-term price action but could strengthen downside support. It may focus on dividends over buybacks, potentially boosting preferred stock.
The US-China Trade War Is Likely to Split the Semiconductor Industry into Two Groups.
- The US-China trade war has shaped a new trend: Advanced and Matured Technologies led by Taiwan Semiconductor (TSMC) – ADR (TSM US) and Semiconductor Manufacturing International Corp (SMIC) (981 HK) respectively.
- Notably, construction of semiconductor fabs in Singapore seems to be of lesser concern at the moment.
- The emergence of AI offers new hope, not only for advanced semiconductor technology but also for lagging technologies.
Xiaomi’s Smartphone Share Gain in Japan Is a Harbinger of Good Things to Come
- Xiaomi’s Japan market share rose to ~7% in C2Q24 from the year prior, driven by carrier partnerships and brand recognition from SU7 media coverage and a product partnership with LEICA;
- Upon examination, we found Xiaomi filled a product gap left by the smartphone exits of Kyocera and Fujitsu, for the carriers, which account for 90% of handset sales in Japan;
- In our view, Xiaomi’s success in Japan marks a turning point in its global brand perception, signaling potential for further growth in other developed and high end developing markets.
Calendar Effects Trading Strategy: Combining TOY and Santa Rally Effects for Enhanced Returns
- Calendar effects in equity markets have persisted despite widespread knowledge of their existence.
- Combine the Turn-of-Year (TOY) effect with the Santa Rally phenomenon systematically
- The trading approach historically generates 1.4-2.0% returns over a 7-day period, with a win rate of 75% since 2000.
Enfusion Inc.: Leveraging Managed Services for Faster Monetization To Change The Game! – Major Drivers
- Enfusion, Inc., during its third-quarter 2024 earnings presentation, demonstrated robust progress in executing its strategic initiatives.
- The company achieved a 15% year-over-year increase in revenue, reaching $51.2 million, with notable growth driven by its strategic focus on larger, up-market clients and geographical expansion.
- Despite favorable revenue growth, the minor challenges faced included slower back book expansion, particularly in the Asia-Pacific (APAC) region, due to geopolitical uncertainties and economic conditions, which impacted organic growth.
Euronet Worldwide: Money Transfer Growth and Strategic Partnerships Driving Our Optimism! – Major Drivers
- Euronet Worldwide has reported its third-quarter financial results for 2024, showing a record performance in key financial metrics.
- The company achieved a revenue of $1.1 billion, with operating income standing at $182 million.
- Adjusted EBITDA reached $226 million, and adjusted earnings per share (EPS) were reported at $3.03, marking an increase of 11% from the previous year.
Genpact Limited: An Insight Into Its Data-Tech-AI Solutions & Other Major Drivers
- Genpact Limited has reported a strong financial performance for the third quarter of 2024, marked by robust revenue growth and improved profitability metrics.
- Revenue for the quarter reached $1.21 billion, representing a 7% increase year-over-year, surpassing the high end of the company’s guidance range.
- This growth was primarily driven by the Data-Tech-AI and Digital Operations segments, with the former growing by 9% and the latter by 5%.
EXL Service: An Insight Into Its Efforts Towards Expansion in Data Analytics & Major Growth Drivers
- ExlService Holdings, Inc. (EXL) reported robust financial performance in Q3 2024, with a revenue increase of 15% year-over-year, reaching $472 million.
- This growth reflects the effective execution of its data and AI-driven strategy across its Analytics and Digital Operations and Solutions segments.
- Adjusted EPS grew by 16% to $0.44 per share, underscoring operation and margin efficiency.
Tech Supply Chain Tracker (28-Dec-2024): TSMC starts Kumamoto fab amid 3rd fab expansion uncertainty.
- TSMC begins mass production at Kumamoto fab as plans for third fab expansion remain uncertain.
- Broadcom CEO foresees million-chip clusters as the future of AI investment frenzy.
- Tata Group announces plan to generate 50,000 manufacturing jobs in EMS and semiconductor sectors.
Advanced Energy Industries Drives Semiconductor Revenue Boom: Next-Gen Platforms Set for 2025! – Major Drivers
- Advanced Energy’s third quarter 2024 earnings reveal a mixed performance across its key market segments.
- The company reported revenues of $374 million, slightly exceeding midpoint guidance, but this marked a year over-year decrease of 9%.
- The quarter benefited from robust demand in the Semiconductor and Data Center markets but faced challenges in the Industrial & Medical and Telecom & Networking segments.
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