Equity Bottom-Up Archives | Page 29 of 222 | Smartkarma

• TSMC: +14.1% Premium; Given Latest Market Weakness, Safest to Wait for a Slightly Lower Premium Before Going Long
• ASE: -1.8% Discount; Good Level to Go Long the Spread
• ChipMOS: -6.8% Discount: Long the Spread, Historical Extreme Discount Level

• Semiconductor industry set to see significant growth by 2025 due to technology advancements and global demand for electronic devices.
• TSMC proposes joint venture with Intel’s foundry division, showcasing industry collaboration for mutual benefit and innovation.
• Huawei takes action against recruitment fraud, penalizing 72 employees, while Altera CEO highlights FPGA advantages over ASIC in AI technology.

• TSMC Eyes Intel Foundry Joint Venture: Strategic Expansion or Risky Bet?
• TSMC Addresses U.S. Expansion Concerns: Strengthens TSMC Position & Positive for Semi Industry Capex 
• MWC Barcelona Showcased The 6G Showdown: MediaTek Vs. Qualcomm in the Race for Wireless Supremacy 

• BP will increase oil and gas spending to USD 10 billion annually through 2027, comprising 66%-70% of total capex, while slashing renewable energy investments by over USD 5 billion. 
• BP reduced its quarterly buybacks to USD 0.75–1 billion from USD 1.75 billion and lowered annual capex to USD 13–15 billion through 2027.  
• Elliott Investment Management is reportedly dissatisfied with BP’s strategy reset, criticizing it for lacking urgency and ambition, potentially prompting further strategic adjustments from the company. 

• Industry sales of wheel loaders and excavators surged 16.5% and 27.2% in 2M25. For Feb alone, the growth rates are even more impressive at 34.4% and 52.8%, respectively.
• Post-CNY, the utilisation hours and rates of construction machinery rose 70.3% YoY and 12.3pp. Market share gain in developing countries will drive exports.
• Government supportive policies announced in NPC will provide support to demand. Current consensus forecasts for profit decline in FY25 are disconnected from industry data.

• MORESCO Corporation (hereinafter referred to as “MORESCO” or “the Company”) is a R&D-oriented company that has developed products boasting market-leading shares in Japan, such as fire-resistant hydraulic fluid for the steel and automotive industries and liquid paraffin used as ingredients in cosmetics, with the aim of achieving domestic production of special lubricants.
• In recent years, the Company has successfully brought to market water soluble die casting lubricants and environmentally friendly hot melt adhesives.
• In addition, it has also gained a leading global share in synthetic lubricants such as high temperature greases and hard disk surface lubricants. 

• We stay negative on Nubank, even after the recent share correction; our rationale is tough competition, especially in Mexico, and worsening credit quality to remain a key risk in Brazil
• We believe that the fundamental outlook for Bradesco should improve further, supported by its strong insurance operations; conservatively, we estimate insurance could account for two thirds of group value
• Our neutral on Banco do Brasil is due largely to heightened political risk; holding company Itausa is the best indirect vehicle through which to gain equity exposure in Banco Itaú

• FY 2025 guidance exceeds previous expectations, with cloud revenues expected to grow 26-28%, and profit to rise 26-30%. Cloud revenues are expected to reach 70% by 2027. 
• SAP optimises its cloud offerings and Opex, with a focus on driving long-term growth through its ‘land and expand’ strategy and AI. Recent senior appointments aim to support operational efficiency. 
• SAP expands AI capabilities, with 50% of deals involving AI use cases. It is aiming to enhance AI agents while positioning itself to benefit from lower AI costs.

• The return of Mr. Tan as CEO suggests that spinning off or selling  Intel Foundry will accelerate, Intel’s focus should improve.
• It probably also means scaling down considerably Intel manufacturing plans and outsourcing more to TSMC. If you can’t beat them, join them.
• Now is not a good time to buy Semiconductor stocks. It will take a couple of years to fix Intel’s problems. TSMC will benefit.

• BYD will release its 2025 annual results on March 24.
• The stock price has risen by 38% since our last buy rating on January 6.
• However, we believe there is still an upside of 19% for the next twelve months.

• Taking advantage of a doubling in its share price over the last year, Austal is tapping the market to fund the expansion of its US facilities to fulfil US Navy contracts.
• Austal is placing out 52.6mn new shares (non-underwritten) at A$3.80/share – ~A$200mn all-in – a 15.6% discount to last close, and effectively tapping out its annual placement capacity.
• Provided the placement is squared away, founder John Rothwell will unload $50mn of his own stock. As such, any M&A activity is now firmly on the backburner. 

• Defense Windfall: JSW dominates Japan’s artillery market, set to benefit as defense spending triples, driving a 232% surge in defense sales to 80 billion yen by 2028.
• Strategic Expansion: Exclusive forging capabilities secure JSW’s artillery monopoly, while investments in railguns and next-gen armoured vehicles fuel long-term growth.
• Energy Tailwinds: JSW’s nuclear and offshore wind expertise ensures stable revenue, with reactor restarts and turbine foundations boosting its power segment’s profitability.

• Cambridge, a Singapore-based firm, purchases a Sydney office block for $70M from a former Tysan boss, expanding its real estate portfolio
• Hong Kong Land reports a significant increase in losses, totaling $1.4B, attributed to challenges within its Central Portfolio
• M&G Real Estate invests $62M in student housing in Melbourne, Australia, highlighting their focus on the Australian real estate market. Warburg Pincus forms a partnership with SK Group to develop Korean senior living facilities, tapping into the growing demand for elderly care in South Korea.

• In recent years, Goldlion is facing performance headwinds. Both revenue and net profit have shown a downward trend due to declining consumption, real estate crisis and unfavorable external factors.
• In short term, the weak consumer confidence and market momentum are unlikely to improve. Goldlion’s performance may gradually pick up in 2026 and 2027 but is still in downward trend.
• Considering the low trading liquidity, weak fundamentals, uncertainties on performance brought by Goldlion’s potential strategic transformation and  the concerns on the outlook, we think the Cancellation Price is acceptable.

• IndusInd Bank recently disclosed a significant accounting discrepancy in its derivatives portfolio, estimated to impact its net worth by INR 1,580 crore (~2.35%). 
• The issue pertains to internal trades executed over the past 7–8 years, now identified through a detailed internal review initiated following regulatory changes.
• This development, when viewed alongside the abrupt CFO exit, regulatory pushback on CEO tenure, and existing operational challenges, raises concerns around internal controls, risk governance, and management credibility.

• Following Broadcom CEO saying “no” and TSMC investing another US$100bn in Arizona, speculations of an Intel takeover have subsided.
• On the increase, rumors of further Intel 18A delays and production push out. This means more outsourcing to TSMC for longer as mentioned by Intel’s IR last week.
• Now is not a good time to buy Semiconductor stocks, but AMD and TSMC will benefit.

• Narayana Hrudayalaya Ltd (NARH IN) is a prominent player in the Indian healthcare sector, distinguished by its commitment to providing affordable, high-quality medical services.
• The company established its first international hospital in the Cayman Islands in 2014, targeting patients from the Americas and Caribbean regions by offering competitively priced medical services
• Management has outlined a capex guidance of around INR 4,000 crores over the next 3 to 4 years, funded by healthy cash flows and stable operating margins.

• Palladyne AI sells real-time learning and reasoning AI software platforms for robots, drones, and smart industrial systems.
• The company engages in the design, development, and manufacturing of industrial robotic systems that augment human performance by combining human intelligence, instinct, and judgment with the strength, endurance, and precision of machines to enhance employee safety and productivity.
• Its mobile robotic systems include the Guardian S, Guardian GT, Guardian XO, and Guardian XT. Palladyne AI was founded in 2015 and is headquartered in Salt Lake City, Utah.

• Shilpa Medicare (SLPA IN) will begin commercializing new molecules across segments, driving growth to new heights as older products are phased out, ensuring sustained progress and innovation in its business.
• In recent years, the company has experienced growth stagnation and declining profitability due to US FDA issues affecting both the company and its key client in the API segment.
• The company’s pipeline of new molecules offers significant growth potential, with a single successful molecule poised to elevate the company to unprecedented levels over the next five years.

• GiG Works reported a revenue of JPY5.9bn, an 8.6% YoY decline, with all profit categories turning to losses.
• The On-demand Economy business, accounting for 42% of Q1 revenue, saw a YoY decline in revenue and profit.
• The Sharing Economy business achieved YoY revenue and profit growth, with a 10.8% revenue increase to JPY1.2bn.

• We believe all business, including smartphone and vehicle, will grow strongly in 4Q24 and 2025.
• We expect EPS will increase by 15% YoY in 4Q24 and 41% in 2025.
• However, we believe the market overvalues the newly launched vehicle business.

• Alibaba Group Holding has made a significant move in the AI space with the release of its latest artificial intelligence model, QwQ-32B, as it seeks to establish itself as China’s leading AI developer, challenging DeepSeek.
• The model, which excels in mathematical reasoning, coding, and problem-solving, demonstrates capabilities comparable to both DeepSeek’s R1 and OpenAI’s latest technology.
• However, a key differentiator is its size, as QwQ-32B operates with only 32 billion parameters compared to DeepSeek R1’s 671 billion.

• Sea Ltd booked a blowout set of results, with strong growth and profitability across all three divisions, surpassing previous guidance and bringing about the second profitable year for the company. 
• E-Commerce was the key feature, with GMV surpassing US$100bn with increasing take rates, with core marketplace GAAP Revenues booking nearly +50% YoY growth in 4Q2024, confirming Shopee’s lead position. 
• Digital Financial Services and Digital Entertainment also booked strong growth, with management highlighting a positive outlook for all three segments in 2025. Sea Ltd remains a core holding. 

• Southern Company reported strong performance for the fourth quarter of 2024, with adjusted earnings per share (EPS) reaching $4.05, marking an 11% growth from the previous year and positioning itself at the top of the 2024 guidance range.
• This success is attributed to steady investments in state-regulated utilities and the successful management of weather-related impacts.
• Positives from the earnings report include the addition of 57,000 new residential electric customers and 26,000 new customers in natural gas distribution businesses, reflecting robust growth, particularly in the Southeast.

• MSCI China has rallied 19% YTD, outperforming DM and EM by 18% and 14% respectively.  We think it makes sense to look at China and Hong Kong again
• Part of the rally is driven by AI optimism.  In terms of fund flow, we are seeing increasing south-bound fund flow to HK equity market at a fast pace
• We think Sun Hung Kai Properties, which is a proxy for Hong Kong, may benefit and play the catch up game on the back of very attractive valuation

• COAL’s production growth during Apr-Feb 25 has slowed to 1.5% yoy due to a high base effect and is unlikely to grow significantly in the near future
• Regulated pricing mechanism means low correlation to international price movements. E-auction (10-12% of volumes) prices crash -25% yoy in line with international trends, impacting profitability
• Single digit PE is in line with historic multiples. Wage renegotiations due in June 2026, rising coal production from captive producers, surge in renewable capacities are headwinds

• SITC International (1308 HK)‘s 93.5% profit growth in FY24 is at the top-end of the positive profit alert. A final DPS of HK$1.4 put it on a 7.3% dividend yield. 
• The FY25 long-term contract rate is expected to rise 10%, with volume growing at least 5% and lower costs. The consensus forecast of a 23.1% earnings decline is too conservative. 
• Having an ROE of 32% for FY25F, its 12-month forward P/B of 2.46x (vs. average of 2.59x) with net cash equals 5.4% of market capitalisation are inexpensive. 

• Global smartphone market expected to see substantial growth in 4th quarter of 2024, indicating a positive trend for the industry.
• TSMC experiences a drop in revenue in Q1, as AI sector continues to expand and company addresses discrimination allegations.
• AMD CEO recognizes value of open-source technology in DeepSeek, while HP announces plans to reduce workforce by cutting 2,000 jobs, reflecting industry challenges.

• Cisarua Mountain Dairy booked a strong finish to the year in terms of sales growth despite a high base driven by premium consumer foods, but with dairy showing recovery. 
• The company saw an improvement in gross margins in 4Q2024 driven by the stabilization of raw materials and product mix, but operating margins were impacted by higher promotional spending..
• Cimory will drive future growth by expanding across channels, especially general trade and with the launch of new products in both dairy and consumer food segments. Valuations remain attractive.

• China has banned Illumina, the U.S. genomics giant, from exporting gene sequencing machines to the country, escalating sanctions imposed last month when the company was added to Beijing’s Unreliable Entity List.
• The move is expected to accelerate domestic alternatives in the gene sequencing industry.
• Illumina, a dominant player in the global gene sequencing industry, has been a major supplier in China since entering the market in 2005. It once held a near-monopoly in the country’s gene sequencing sector before Chinese rival MGI Tech Co. Ltd. emerged in 2015 as a competitor. Since then, the two companies have battled for market share in China while engaging in global patent disputes.

• In late January, Daihatsu Diesel Mfg (6023 JP) announced its once/former parent would sell all its shares; in part to a private company in the industry and a 20% buyback.
• The buyback – a below-market own-share tender offer – was priced low enough to be a big win. Accretion added to that. 
• Buyback Tender Results and External Changes signal overhang and opportunity. Either way, it’s cheap, but good governance could make it even cheaper.

• Apple’s AI struggle. Google’s Gemini has won? TSMC ex-Chairman is joining Micron’s board
• SK Hynix out of image sensors. Korean Gvt launch US$100bn fund for strategic industries
• Stargate first data center is under way. Close to 100k Nvidia GPU in 2026. Hon Hai makes the servers.

• Strong focus on capacity enhancement. Increasing steelmaking capacity by 65% over the next 3 years to 15.9mt.
• Recent margin dip provides attractive entry point. Promoters/insiders have bought into recent decline in stock price
• Attractive long-term play on rising domestic steel demand. Low debt levels at <1.4x EBITDA allows for steady capacity addition. 

• H224 showed moderating top-line growth, but solid Y/Y improvement in EBITDA margin
• However, the levers that drove margin improvement in 2024 appear to be losing power
• Within China’s express and logistics segment, we find SF Holding to be far more attractive

• Kazakhstan is a landlocked country right between Russia and China. It’s wealthier than most realize, with a great amount of natural resources such as oil & gas and uranium.
• Thanks to resource extractions and favorable demographics, GDP per capita has grown rapidly.
• One of the biggest beneficiaries of that growth has been Halyk Bank – the country’s leading commercial bank.

• The share price of AviChina Industry & Technology H (2357 HK) has picked up in Mar, and it will continue to chase the HSI and HSCEI, in our view.
• At 54.1%, AviChina’s discount to its A-share holdings has narrowed 4.2pp YTD, but is still behind the 6.2pp contraction for overall H-A shares. There is more room to catch up.
• The increase in defense spending, advancement in domestic commercial aviation and development of the low-altitude economy are major potential drivers.

• Hanmi Pharm (128940 KS) targets revenue CAGR of at least 15% during 2025–2027 (2021–24: 7.5%) to achieve revenue of KRW2.3T in 2027 and KRW5T by 2033.
• Hanmi expects to achieve operating profit of KRW380B in 2027, with operating margin of 16.5% (2024:14.4%). Operating profit is expected to reach KRW1T in 2033, with operating margin of 20.0%.  
• R&D pipeline should play a major role in achieving the targets. The company plans to gradually increase the R&D spending to 15%+ of revenue.

• Multi Bintang Indonesia (MLBI IJ)  delivered steady FY24 growth, with revenue and profits up 1.9% and 7.1% YoY, respectively. Q4 FY24, however, underperformed expectations with revenue/profits up 0.6%/1.7% YoY.
• Although Q4 typically represents >30% of overall annual revenue/profits, being the strongest season, its performance was disappointing compared to the strong 21%/35% YoY revenue/profit growth seen in Q3 2024.
• Multi Bintang Indonesia (MLBI IJ) represents tremendous value with a dividend yield of 9% (100% payout), ROEs exceeding 80%, and a cheap multiple of 11x FY24 PE. 

• Gensol clarified that debt woes are because of short term liability mismatch which contradicts with Lender’s clarification
• Promoter said they will buy from the open market and will also infuse money into company but their recent stake sale again contradicts.
• 2nd CFO Resignation within 6 months further raises alarm over governance issues.

• JD C4Q24 revenue exceeded our estimate/consensus by 3%/4% and adjusted NI by 16%/19%, driven by subsidies and logistic efficiency gains.
• We expect JD to maintain 11% YoY revenue growth in C1H25 but moderate to 5.9% in 2H. 
• We maintain JD.com’s TP at US$ 52 and the BUY rating. Market concern on lack of details for long term driver is valid but JD.com still has time.

• Investors had hoped to see tangible benefits of Taobao / Tmall access in Q424 results
• But revenue growth acceleration was unimpressive, and core margins fell noticeably
• We believe its disappointing Q424 numbers will result in near-term underperformance

• NACL posted its best ever quarterly performance in 3QFY25, driven by a sharp spike in alumina prices. Alumina prices have since cooled off but remain elevated at above US$450/t
• NACL is set to expand its alumina capacity by 33% over the next 12 months. This will help double its external alumina sales from 1mt to 2mt. 
• Trades at 25% discount to historic PE of 13x despite record earnings, healthy balance sheet and strong near-term volume growth driven by brownfield expansion.

• Play on rising aluminium demand. Aluminium demand has outpaced supply with strong Chinese demand. 
• Management has guided better margins at Novelis which faced a temporary drop in margins due to scrap shortages.
• Hindalco’s Indian operations are fully integrated with captive bauxite, alumina and to certain extent for energy. Trades at a 20%+ discount to its historic PE multiples.

• Jai Corp Ltd (JFI IN) allegedly misappropriated INR2,434 crore from investors, diverted funds offshore, and engaged in fraudulent trading, triggering CBI probe into financial misconduct, money laundering, illegal stock manipulation.
• The Bombay High Court directed a CBI investigation after allegations surfaced of fake exports, foreign currency loan diversion, and fund rotation through shell companies in Mauritius and Jersey.
• Jai Corp claims no official notice of the FIR yet but pledges full cooperation; investors await regulatory actions from SEBI, RBI, and ED, which could impact the company’s financial standing.

• Ameren Corporation reported strong operational and financial results for 2024, marked by strategic investments and regulatory successes.
• The company achieved adjusted earnings of $4.63 per share, surpassing the previous year’s $4.38 per share and exceeding the adjusted earnings guidance midpoint for 2024.
• This growth was largely driven by strategic infrastructure investments and weather-normalized retail sales growth of approximately 2% across Ameren Missouri.

• CenterPoint Energy reported its fourth quarter and full year 2024 earnings, showcasing both positive and challenging aspects.
• The company achieved a non-GAAP earnings per share (EPS) of $0.40 for the fourth quarter and $1.62 for the full year, reflecting an 8% increase over the previous year.
• This marks the fourth consecutive year of meeting or exceeding annual non-GAAP EPS guidance.

• Brookfield Renewable Partners recently reported its fourth-quarter 2024 results, marking a year of significant operational and financial achievements.
• The company delivered its strongest financial performance to date, driven by a robust demand for its low-cost renewable energy.
• The company reported a 10% increase in funds from operations (FFO) per unit year-on-year, fueled by inflation-linked and contracted cash flows, strategic acquisitions, and organic growth initiatives.

• American Water’s recent conference call focused on several key aspects of their financial and operational performance during 2024, as well as future outlooks.
• Delivered earnings per share (EPS) for the year stood at $5.39, reflecting an 8% growth owing to favorable weather conditions and strategic investments.
• Notably, $3 billion was invested into capital initiatives, while regulatory efforts resulted in successful rate case agreements across multiple jurisdictions.

• Hong Kong continues its secular bull market and has now reached its first significant resistance in the 24k to 25k.  Growth factor investing is leading in long-only investing.
• Mainland buyers continue buying Hong Kong stocks at a historic rate with buying focused in the tech sector and specifically in AI-related companies.
• Zoomlion Heavy Industry H (1157 HK) has broken its double-top formation and is at a new high.  Vtech Holdings (303 HK) broke out to a new high with improving momentum.

• BHP stock affected by fat finger incident causing rapid drop in share price
• Ex dividend date for BHP, investors may miss out on dividend payment if purchased on or after ex dividend date
• Order for 750,000 BHP shares at higher price causes market disruption, shows impact of large trades on stock price fluctuations.

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• Cochlear Ltd (COH AU) now expects FY25 underlying net profit to be at the lower end of A$410–430M guidance range due to lower services revenue and higher cloud-related investment.
• Despite 5% growth in H1FY25, Cochlear reiterated that “solid market growth rates to drive cochlear implant unit growth of around 10% in FY25.”
• Cochlear is expected to release next-generation cochlear implant in mid-2025. The introduction of the new off-the-ear Nucleus Kanso 3 sound processor is expected to contribute to services revenue from FY26.

• Mahindra & Mahindra (MM IN)growth has been an outlier in the intensely competitive Indian passenger car industry.We share insights on how this trend has evolved over the past several months.
• This insight provides detailed analysis of sales performance of key players-Maruti Suzuki India (MSIL IN) ,Mahindra & Mahindra (MM IN),Tata Motors Ltd (TTMT IN) & Hyundai Motor India (HYUNDAI IN) 
• Various initiatives introduced in the recent Union Budget are expected to boost demand for passenger cars in the medium term.

• Central Pattana is Thailand’s largest retail property developer that operates its own ecosystem across retail, office, residential and hotel
• We think Central Pattana has maintained sound and solid capital management strategies to drive shareholders returns, including increasing dividend payout, de-leveraging as well as M&As
• The macro outlook for Thailand is mixed, but we think post-covid tourism is undergoing recovery and this will support CPN’s key operating businesses

• Texas Roadhouse, Inc. reported robust financial and operational metrics for the fiscal year 2024, marking it as another successful year for the company.
• The restaurant chain achieved a revenue milestone, nearing $5.4 billion, driven by positive traffic growth across its brands.
• The average unit volume exceeded $8 million for the first time in the company’s history, thanks to double-digit growth in restaurant margin dollars, income from operations, and earnings per share for a consecutive year.

• Insulet Corporation concluded a robust fiscal year 2024 with notable achievements in both the fourth quarter and the full year.
• The company achieved a milestone by surpassing $2 billion in revenue, marking its ninth consecutive year with at least 20% constant currency revenue growth.
• Key drivers of this growth include the strong performance and adoption of the Omnipod 5 insulin delivery system, both in the U.S. and expanding international markets.

• Floor & Decor Holdings has presented its fourth quarter and full-year results for fiscal 2024.
• The results include positive developments as well as several challenges facing the company.
• Key highlights of the performance include solid sales growth, market share expansion, and effective cost management strategies amid a contracting flooring industry.

• Japan’s elderly population is projected to continue to grow through 2040, and Pharmarise HDS will benefit from the corresponding increase in the number of prescriptions.
• However, there are expected to be revisions to national health insurance (NHI) drug prices , one measure to restrain medical spending, and revisions to dispensing fees, which are made once every two years.
• Among the industry, the company is keen on preparing to counter downward pressure on prices by focusing on capturing technical fees, including community support system premiums and family pharmacist guidance fees. 

• Copart, Inc. reported its results for the second quarter of fiscal 2025, demonstrating strong operational and financial performance.
• The company showed robust growth in both its domestic and international segments, driven by strategic initiatives and the expansion of its service offerings.
• Copart’s extensive network allows it to effectively manage and capitalize on fluctuations in total loss frequency, a measure that hit an all-time high in the U.S. during the fourth quarter.

• TSMC just held a press conference this evening in Taiwan regarding its expanded U.S. investment plans. TSMC said it won’t impact Taiwan investments; it is actually accelerating its Taiwan investments.
• Additionally, we see TSMC’s aggressive U.S. expansion significantly weakening Intel’s ability to compete, as it removes one of Intel’s major differentiators–domestic U.S. production.
• Maintain Structural Long rating on TSMC — Expanded U.S. investment fortifies the company’s global leadership. ALSO — Positive news for semiconductor manufacturing equipment companies internationally and in Taiwan. ASML, etc.

• Tencent’s stock price has risen by 35% since our last buy rating. Downgrade to Hold.
• Our EPS estimate for 2025 is 12% over the market consensus.
• We believe both revenue growth and margin will improve in the coming 4Q24 results.

• TSMC’s first 3 Fabs (capacity 80k wafer/month for US$65bn) start production from 2025 to 2030. The newly announced next 3 Fabs (90k, $100bn) should roll  out over 2030-35.
• Given Capex in the US is 70% higher than in Taiwan, wafer price will be ~45% higher.
• That’s probably why only 12% of TSMC EUV capacity will be in the US by 2030. Customers want more supply security but cost matters.

• TSMC Chairman Dr. CC Wei pointed out that TSMC builds production lines everywhere to meet customers’ demands. TSMC has never gone against this principle.  
• On the 3rd of March, U.S. President Trump and TSMC Chairman jointly announced at the White House that TSMC would reinvest at least $100 billion in the U.S.
• Regarding concerns from the public that TSMC might gradually shift its production focus to the U.S., TSMC made it clear that this would not happen.

• Astra International recently released finely balanced set of FY2024 results, with weaker auto sales offset by stronger 2W and financial segment performance, with other segments also performing above expectations.
• Financial services growth was driven by stronger multifinance growth, whilst the heavy equipment division saw stronger growth from mining contracting and gold offsetting slower growth from coal mining.
• Astra continues investing in sustainable energy, nickel, and healthcare and looks for new opportunities. Valuations remain attractive on less than 6x forward PER and yield > 8%. 

• Gensol Engineering (GENSOL IN)’s credit rating was downgraded to default, triggering a 34% stock decline in just five days. ICRA flagged misleading financial disclosures, high promoter pledges raised serious concerns.
• The company is grappling with delayed debt repayments, aggressive accounting policies, and uncertainty in equity infusion, impacting its ambitious EV manufacturing and solar EPC expansion plans.
• Gensol’s governance issues, cross-default risks, and financial opacity create a high-risk scenario for investors. Management must provide clarity on debt servicing, pledged shares, and capital infusion to restore confidence.

• There is speculation about Deepseek’s wafer manufacturing yield issue at Semiconductor Manufacturing International Corp (SMIC) (981 HK) these days.  
• The potential concern serves as a signal for a hot topic within the company, carrying two underlying meanings.
• Although NVIDIA Corp (NVDA US) is making waves in AI applications, we must not overlook the potential for continued creative developments in the world, such as Deepseek’s solution.  

• Nongshim announced that it plans to increase the prices of its instant noodles and snack products starting next week. 
• Nongshim plans to raise the retail prices of 14 instant noodle products by 7.2% on average and three snack products by 7.4% starting Monday (10 March).
• We estimate the consensus to raise their earnings estimates by 5-10%+ in 2025 and 2026, driven by the higher product prices of major instant noodles and snacks. 

• Steep fall in diamond prices leading to slowdown in demand for certification services since its not viable as much for a consumer as it used to be.
• A leading jeweller in India reiterated that certification demand for diamonds is slowing down due to changing consumer preferences.
• The International Gemmological Institute, the leading certification agency, is now facing headwinds evident from earnings growth slowdown.

• Booking Holdings, a major player in the global online travel industry, reported its fourth-quarter and full-year 2024 financial results, showcasing a strong performance across several key metrics.
• The company achieved a 13% year-over-year growth in room nights during the fourth quarter, surpassing its expectations and reflecting robust demand across all major regions.
• The growth in room nights contributed to a 17% increase in gross bookings and 14% revenue growth, both exceeding the company’s prior guidance.

• Nvidia’s stock has underperformed this year due to intense scrutiny and high expectations
• Despite strong fundamentals, it is difficult for Nvidia to surprise investors and move the stock price
• Potential for upside lies in Blackwell demand and upcoming announcements, but meaningful surprises may be limited due to the company’s high level of scrutiny and public knowledge

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• PC Partner (1263 HK) reported FY24 results which showed a strong finish to the year
• Relisting on SGX on track to complete by 3Q25. If this completes it should allow the company to finally access NVDA’s AI chips.
• Better availability of RTX5090 and RTX5080 in 2Q25 and potential AI chips could turbocharge 2H25 results.

For our next Corporate Webinar, we are glad to welcome MoneyHero Group’s CEO and Director, Mr Rohith Murthy.

In the upcoming webinar, Rohith will share a short company presentation after which, he will engage in a fireside chat with Smartkarma Insight Provider, Alec Tseung. The Corporate Webinar will include a live Q&A session.

The Corporate Webinar will be hosted on Monday, 17 March 2025, 11:00 SGT. 

About MoneyHero Group

MoneyHero Group connects people to a better financial future. The mission at MoneyHero Group is to make all of life’s financial decisions a time saving and rewarding experience. MoneyHero Group educates consumers about personal finance, helps them decide which products are best suited for their needs, and facilitates getting the product. They connect financial institutions with their target customers and help them achieve their customer acquisition objectives.

• Crystal International ‘s business operations started to turn around in 2024 as most brand customers ended the destocking cycle and adjusted their inventory strategy.
• Crystal International is trading at attractive valuations of EV/EBITDA of 3.5x and P/E of 8.1x, based on 2025 consensus earnings estimates. Estimated dividend yield is at 6.5% in 2025. 
• The company is one of the largest OEM apparel manufacturers in the world. It has a proven record of executing its business strategy successfully for more than five decades.

• Discussion with Darren Kwok from Barminko and Andrew Dawson from Sandvik about load and haul equipment in the mining industry
• Explanation of different types of load and haul equipment, including full battery, hybrid, and diesel electric
• Exploration of reasons why certain technologies, like diesel electric, have not been widely adopted in underground mining operations

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• Far East Consortium sold a UK hotel to AMTD IDEA Group for $57M, expanding the latter’s presence in the hospitality industry.
• Qingjian and CCCC made a joint bid of $234M for a Singapore site, highlighting the competitive nature of real estate acquisitions in the region.
• C&W reports that the APAC data center market will require a substantial $116B in funding to support its growing pipeline of projects.

• TSMC’s expansion in US poses a challenge to Trump’s labor strategy, according to DIGITIMES analyst.
• Tesla leads in AI technology for electric vehicles and robots, pushing the boundaries of innovation.
• European telecoms shift focus to AI as 5G deployment faces delays, while Indian mobile market shows growth potential in 2025.

• On February 14, 2025, Geechs Inc. (hereafter, “the Company”) announced its Q3(9M) FY2025/3 earnings results.
• Net sales rose 5.2% YoY to JPY 18,705 mn, EBITDA rose 67% YoY to JPY 440 mn, and operating profit rose 503% YoY to JPY 348 mn.
• This reflected steady growth in the core IT freelance matching business (Japan), reduced losses in the IT freelance matching business (Overseas), improved profitability in the Seed Tech business, and an end to losses from G2 Studios (formerly the Game business) following its sale at the end of FY2024/3. 

• On March 5 Chinese freight platform Full Truck Alliance posted another great set of results
• Strong Q424 top-line growth was matched by firm OpEx control, leading to higher margins
• We’ve upped our FY25 earnings numbers; we rate YMM a BUY with a US$17/ADS target

• Three new Hong Kong SDRs, Xiaomi, Meituan, and Ping An Insurance, are now tradable on SGX, expanding thematic exposures.
• HK SDRs offer cost-effective access to Hong Kong stocks with lower brokerage fees, no forex fees, and SGD settlements.
• Since October 2024, HK SDRs’ daily turnover increased eightfold to S$4 million, with significant trading in Tencent, BYD, and Alibaba.

• Activist investors, confusing market price with intrinsic value, have shot themselves in the foot by offering terrible advice to Keisei Railway’s management. 
• When Keisei followed advice from the activist, selling just 1% of the shares of Oriental Land, Keisei’s share price collapsed, proving market price has nothing to do with intrinsic value. 
• Keisei’s revenue growth and return on investment are stronger than most of its peers, and the crash in its stock price caused by activists might create an opportunity for others.

• On March 1, ex Intel CEO Craig Barrett posted a rebuttal of his former board members opinion piece on the subject of the company’s future
• He claims that Intel is back, the company must not be broken up, the board should be fired and Mr. Gelsinger should be rehired to finish the job he started
• Meanwhile, Intel has put its Ohio fab on hold until the end of the decade, its German fab on hold for two years, both damning indictments of Mr Gelsinger’s strategy

• TSMC plans to invest $100 billion in the US to build three new fabs, two new advanced packaging facilities and establish an R&D centre, all in Arizona
• During the press conference at the White House, Mr Wei received fulsome praise from President Trump and was careful to thank him for his vision and support on multiple occasions
• The announcement lacked key details such as construction timelines and which process technologies would be deployed but it would still appear to have done the trick, at least for now.

• On March 4th, Taiwan Semiconductor (TSMC) – ADR (TSM US) announced that the company will further increase its investment up to $100 billion in the US.
• The restructured case of Intel Corp (INTC US) has elicited different opinions, but a few companies may consider trying out Intel Foundry Service.
• Currently, we find these developments acceptable, although we view them as the result of political interference, and time will tell.

• Sinfonia Technology is strategically positioned to benefit from Japan’s rising defence and semiconductor investments, leveraging its expertise in precision motion systems and power electronics.
• The company holds a leading market share in aerospace and semiconductor handling, underpinned by robust financial performance and a well-defined strategy for future growth.
• Amid increasing geopolitical tensions, Sinfonia’s integral role in space and defence applications enhances its long-term growth potential, making it a noteworthy player in Japan’s industrial expansion.

• TSMC’s Latest Global Expansion Plans, Visualized; Taiwan Manufacturing Will Continue to Remain One Generation Ahead of Overseas
• TSMC (2330.TT; TSM.US): Invest Further in US up to 100bn; Intel Foundry Service Gets Direct Clients.
• Memory Monitor: Nanya Tech Soared on DRAM Recovery and Custom HBM News 

• TSMC: +18.5% Premium; Wait for Lower Premium Before Going Long
• ASE: +0.2% Premium; Near-Parity Premium is Opportunity to Long the Spread
• ChipMOS: -3% Discount; Rare Discount is Opportunity to Long the Spread

• Recent surge of share price is driven by the craze for DeepSeek/AI in digital healthcare, not the improvement of fundamentals or effective validation of business model.So, the rally won’t last.
• Although AI is a great story, the extent to which DeepSeek can bring substantial benefits to PAGD remains to be verified. Small revenue scale may lead to low valuation premium.
• PAGD is expected to turn loss into profits in 2024. Short-term valuation should be lower than peers. When PAGD achieve profitability/revenue in large scale, P/B would approach the industry average.

• Rakuten is utilizing AI and O-RAN to lower telecom costs and broaden its global footprint in the industry, focusing on efficiency and expansion.
• IBM has launched Granite 3.2, an advanced AI platform that incorporates on-demand reasoning and vision-language model to bolster its AI capabilities, fostering innovation in the field of artificial intelligence.
• The GSMA has revealed the four key pillars that will shape the future of 5G technology at MWC 2025, highlighting the importance of advancements in connectivity for the development of mobile networks.

• We summarize the Philippine Stock Exchange (PSE PM) earnings for FY24. Revenues/core earnings declined 1.2%/2.9% YoY. Inclusive of the gain in the stake of PDS, profits were up 56% YoY.
• The outlook for 2025 is strong, bolstered by the completed acquisition of a 78.3% stake in PDS and a 75% increase in listing maintenance fees, which contribute 18% of revenues.
• With a FY25 PE of 13.6x, over 10% cash in the market, more than 50% EBITDA, and a 7.4% dividend yield, the stock presents an attractive investment opportunity.

• 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.

• 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.

• Learn about India’s worst accounting fraud, including Yes Bank, Satyam Computer, Kingfisher and others in this report.
• Misappropriation features prominently in these scandals, in addition to fraudulent reporting and corporate governance failure.
• Siphoning of funds from bank loans, in particular, has been a common feature of Indian corporate malfeasance.

• Mixue Group (2097 HK) has a successful IPO in Hong Kong, with share price surged 43.2%. We will trim from here and will not buy at the current level.  
• Our forecasts call for a decent 20.8% and 17.6% earnings growth for FY25 and FY26, putting it on RICH PERs of 19.1x for FY25 and 16.3x for FY26.
• The Chinese tea sector has average PERs of 12.4x and 10.5x, suggesting MIXUE’s leadership is well reflected in the over 50% premium, and the safety margin has significantly narrowed. 

• Crisil Ltd (CRISIL IN) and India Rating Downgrade AGS Transact Technologies (AGSTRA IN) to ‘D’ from “A/Stable’ post a default
• Rating agencies exist to anticipate events such as defaults and not react after being informed of a default
• Rating agencies ignored poor fundamentals of AGS Transact Technologies (AGSTRA IN) in 2QFY2025 results which clearly and publicly revealed deteriorating cash flows and a high-risk financial strategy

• Shenzhen International (152 HK)‘s FY24 net profit will range at HK$2.8-3.1bn (53-63% growth YoY), boosted by a HK$2.3bn gain from South China Logistics Park Transformation.
• Extrapolating this gain to the whole land plot will generate a profit of HK$11.4bn, or 66% of the current market capitalisation. The stock is significantly undervalued at 0.49x P/B. 
• At an assumed 50% payout ratio, SZI’s yield is at 9%. Moreover, with stable profit expected for FY25 and FY26, the yield will be maintained for the next two years.

• 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.

• 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.

• Ligand Pharmaceuticals holds a portfolio of revenue, royalty & milestone generating assets that have been vetted by its internal investment team.
• Ligand considers individual biopharmaceutical products, platforms, companies & income streams in its opportunity set.
• It targets late-stage and commercial income-producing assets when making investments.

• Genuine Parts Company reported its financial performance for the fourth quarter and full year ending 2024, revealing a mixed set of results amidst challenging market conditions.
• The company’s total sales for 2024 were $23.5 billion, representing a growth of 1.7% compared to the previous year.
• This growth was bolstered by strategic acquisitions which contributed 260 basis points but was offset by weaker market conditions, particularly in the industrial segment.