In today’s briefing:
- O2Micro (OIIM US): US$5 Privatisation Approved, Spread Remains Wide
- MTCH 4Q22: More Bullish Than You Think
- Lam Research Corp: Acquisition Of Semsysco GmbH & Other Drivers
- ServiceNow Inc: New Offerings & Other Drivers
- International Business Machines (IBM): New Analytics Offerings & Other Drivers
- Pfizer Inc (PFE US): Q4 Result- In-Line Revenue & EPS Ahead of Guidance; Initiates 2023 Guidance
- Freeport-McMoRan: Major Drivers
- Procter & Gamble: Recent Earnings Reaffirm My Cautious View On The Stock
- Hesai Group Pre-IPO – Peer Comparison – Not Really the Largest, Globally or Locally
- Boeing Co: New Military Aircraft Launch & Other Developments
O2Micro (OIIM US): US$5 Privatisation Approved, Spread Remains Wide
- O2Micro International (OIIM US)‘s US$5.00 per ADS privatisation offer from FNOF Precious Honour Limited was overwhelmingly approved by shareholders.
- The key remaining condition precedent is obtaining the required regulatory approvals related to the listing rules of NASDAQ and the Cayman Islands. There are no Chinese regulatory approvals required.
- The conditions precedent should be satisfied shortly. At the current price and for an end-March close, the gross and annualised spread to the offer is 6.4% and 45.6%, respectively.
MTCH 4Q22: More Bullish Than You Think
- Inline performance and inline guidance…the stock mistakingly traded down on Tinder’s optically weak sub growth.
- Longer term, CEO BK Kim is making the right moves reorganizing the company to focus on the growth engines (Tinder, Hinge), the idiosyncrantic drivers (Asia), and cost cutting (Evergreen Brands).
- Reiterated 2023 guidance will prove conservative, with the stock still trading at alltime lows despite the 30% move up so far this year…we buy this dip.
Lam Research Corp: Acquisition Of Semsysco GmbH & Other Drivers
- Lam Research ended the previous year on a strong note and posted an all-around beat in the last quarter.
- The CSBG revenues in the company’s installed base business expanded faster than its growth in the installed base units.
- We provide the stock of Lam Research with an ‘Underperform’ rating with a revision in the target price.
ServiceNow Inc: New Offerings & Other Drivers
- ServiceNow continues performing well as its recent quarterly result met market expectations in terms of the reported revenues.
- The company exceeded its subscription revenue guidance and drove strong expansion and renewal rates.
- The free cash flow was above its guidance, and it beat the guidance with the growth in subscription revenue and also managed an earnings beat.
International Business Machines (IBM): New Analytics Offerings & Other Drivers
- IBM delivered a strong result for the last quarter and managed an all-around beat as a result of excellent execution with respect to its AI and hybrid cloud strategy.
- It delivered decent revenue growth in its business across geographies, infrastructure segments, consulting, and software.
- The company added a series of innovative IBM software offerings in the AWS marketplace available as-a-Service.
Pfizer Inc (PFE US): Q4 Result- In-Line Revenue & EPS Ahead of Guidance; Initiates 2023 Guidance
- Pfizer Inc (PFE US) reported 13% operational revenue growth in Q4, driven by strong performance of the COVID products and ongoing launch of Prevnar 20 for adults in U.S.
- Pfizer has provided full-year 2023 revenue guidance of $67.0–71.0B (-31% YoY at mid-point) and adjusted EPS guidance of $3.25–3.45 (-49% YoY at mid-point).
- The company is in the midst of an 18-month period during which Pfizer expects to have up to an unprecedented 19 new products or indications in the market.
Freeport-McMoRan: Major Drivers
- This was a strong quarter for Freeport with the company managing an all-around beat.
- Indonesia’s operations by PT Freeport Indonesia are characterized by very low costs due to the gold content and the grades, large volumes, and the world’s largest goldmine is a byproduct.
- In the quarter, gold and copper sales exceeded the guidance of the company and the company generated strong margins.
Procter & Gamble: Recent Earnings Reaffirm My Cautious View On The Stock
- Procter & Gamble’s share price appears to be running ahead of business fundamentals.
- P&G has a limited upside over the short to medium term, according to the recent earnings report.
- The company has a free cash flow point of view, but has a limited upside over a short-term term.
Hesai Group Pre-IPO – Peer Comparison – Not Really the Largest, Globally or Locally
- Hesai Group (HSAI US) is looking to raise at least US$100m in its upcoming US IPO.
- HSAI is a manufacturer of three-dimensional light detection and ranging (Lidar) solutions. It has shipped over 103,000 Lidar units from 2017 to the end of 2022.
- In this note, we will undertake a peer comparison with domestic and US-listed peers.
Boeing Co: New Military Aircraft Launch & Other Developments
- Boeing had another weak quarter and failed to meet Wall Street expectations with respect to revenues as well as earnings.
- The company managed over $3 billion in free cash flow driven by the progress in its performance and continued demand.
- Boeing has a strong pipeline of development programs, and it has been preparing itself for the next generation of products.
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