In today’s briefing:
- HK Connect SOUTHBOUND Flows (To 24 Jan 2025); Again Big Net Buying by SB, Again on Tech
- CACI International Inc.: Counter-UAS Systems & International Expansion Driving Our Optimism! – Major Drivers
- Amphenol Corporation: Can Its Continued Expansion in Automotive Help Alter The Playing Field? – Major Drivers
- Last Week in Event SPACE: Shinko Elec, Tsuruha/Welcia, Macromill, Sun Corp/Cellebrite, MicroStrategy
- TSMC (2330.TT; TSM.US): Earthquake Impact Limited; Setting Newest Production Line Not Viable in US.
HK Connect SOUTHBOUND Flows (To 24 Jan 2025); Again Big Net Buying by SB, Again on Tech
- SOUTHBOUND gross trading activity was again not stronger per day than the previous several weeks, but SB Net Buying was again BIG. Given the change in Tencent, remarkable even.
- The story was follow-through, but SMIC and Xiaomi were also big buys. This is shaping up to be a “let’s buy what US Persons cannot” moment.
- No sectors saw net selling through CCASS data five days to Weds. Top 10 activity was quite concentrated this week. Very few stray names.
CACI International Inc.: Counter-UAS Systems & International Expansion Driving Our Optimism! – Major Drivers
- CACI International reported strong results for the second quarter of its fiscal year 2025, highlighted by a robust revenue growth of 14.5% and an EBITDA margin of 11.1%.
- The company secured $1.2 billion in new business awards during the quarter and reported a trailing 12-month book-to-bill ratio of 1.7x, indicating a solid demand for its services.
- This strong performance has prompted CACI to raise its full-year guidance, projecting revenue between $8.45 billion and $8.65 billion, and adjusted earnings per share ranging from $23.87 to $24.76.
Amphenol Corporation: Can Its Continued Expansion in Automotive Help Alter The Playing Field? – Major Drivers
- Amphenol Corporation concluded the fourth quarter of 2024 on a strong note, reflecting robust financial performance across most of its business segments.
- The company’s quarterly sales reached a record $4.318 billion, a 30% increase in both U.S. dollars and local currencies and a 20% organic growth compared to the same period in 2023.
- This growth was consistent across all served markets, with the company achieving significant milestones in both quarterly and full-year metrics.
Last Week in Event SPACE: Shinko Elec, Tsuruha/Welcia, Macromill, Sun Corp/Cellebrite, MicroStrategy
- JIC announced a “mid-February” start date for Shinko Electric (6967 JP)‘s Tender Offer. That’s a trifle disappointing based on when SAMR approved, but there are lots of people involved here.
- What has been the long-term trend and the trend of the last two years is different. Be long Tsuruha (3391 JP), short Welcia (3141 JP) until above 4.5x, maybe 4.8x.
- Macromill, Inc (3978 JP)‘s reward/risk ratio over the next year of buying at ¥1,250 and seeing what happens is quite good, especially if the deal breaks.
TSMC (2330.TT; TSM.US): Earthquake Impact Limited; Setting Newest Production Line Not Viable in US.
- Taiwan experienced an earthquake on January 21st, and the tremors are still ongoing.
- Dr. CC Wei, Chairman of TSMC, explained the establishment of over 10,000 additional Standard Operating Procedures (SOPs) at the U.S. Fab.
- The yield at TSMC’s Arizona fab is about 4% higher than at their Tainan fab, marking a record for initial production.
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