Equity Bottom-Up Archives | Page 30 of 222 | Smartkarma

• BeiGene’s 2024 results beat expectations, mainly driven by strong sales growth of BRUKINSA. In 2025, BRUKINSA’s sales would exceed Calquence for the first time.But sales performance of tislelizumab remains lackluster.
• Based on positive trend, turning losses into profits is just a matter of time. BeiGene is expected to achieve positive GAAP operating income in 2025, which is an inflection point.
• US$24.5-26.5 billion is the valuation bottom line, below which BeiGene is undervalued. Our forecast is that market value would reach US$37.5 billion. So, there is still upside potential in valuation.

• Airtasker Limited (ASX:ART) is an online marketplace for local services, connecting people and businesses who need work done with people who want to work.
• ART’s reported H1 FY25 results are messy, with a number of non-cash items including media capital spend distorting reported numbers.
• On an adjusted basis revenue growth was 11%, with Airtasker marketplace growth closer to 15%.

• Plover Bay Technologies (1523 HK) reported FY24 revenues/profits up 23.9%/35.4% YoY. H2 FY24 revenue/profit growth was steady at 20%/20% YoY.
• On the conference call, the company did not provide explicit guidance for FY25 but mentioned that growth has been healthy for the six weeks of FY25 and will continue. 
• Trading at 19x/16.4x FY24/25e (assuming 20% growth and flat margins), with a dividend yield of 5.8% and 10% of the market cap in net cash, the stock is worth exploring.

• Medexus (MDP.TO / MEDXF) is my best idea for 2025. The stock trades at a distressed valuation despite the current launch of a new drug that could double revenue and triple EBITDA within 3 years.
• I see 100% upside in 2025, but there is the potential for 400% to 500% upside over a three year period.
• Downside is limited as Medexus has minimal debt (net debt to EBITDA of 0.7x) and a stable base business.

• Revenue increased by 6.0% YoY to JPY4.6bn, with operating profit up 104.7% YoY to JPY952mn.
• EC business revenue rose 7.1% YoY to JPY2.6bn, with segment profit increasing 47.4% YoY to JPY915mn.
• Financial business revenue grew 4.6% YoY to JPY1.9bn, with segment profit up 59.5% YoY to JPY572mn.

• Alibaba Group Holding Ltd. is making a record-breaking bet on artificial intelligence (AI) and cloud computing, announcing on Monday that it will inject more than 380 billion yuan ($53 billion) into cloud and AI infrastructure over the next three years — more than its total capital expenditure over the past decade.
• The Chinese tech giant said in a statement that the investment marks the largest private-sector commitment to cloud and AI hardware in China.
• Since its 2014 initial public offering, Alibaba’s total capital expenditures from 2015 to 2024 have amounted to approximately 376 billion yuan.

• The NewCo model can be considered as an “intermediate state” for Chinese biotech companies when they hopes to enter overseas markets, rather than a real success in internationalization.
• After the announcement of Pfizer-Summit cooperation, share price of Summit plunged. Pfizer is clearly the beneficiary. The possibility of Summit being acquired could be reduced, which make investors unhappy.
• Shares of Henlius surged. Thanks to Lin Lijun’s dissenting vote, investors have the opportunity to profit at a higher price.Next goal is to be included in Hong Kong Stock Connect.

• TCOM reported C4Q24 revenue 5.4%/3.6% higher than our estimate/consensus, and non-GAAP operating profit 11.2%/6.2% higher than our estimate/consensus, supported by strong domestic travel rebound;
• Even though C1Q25 margin guidance was soft due to commitment to overseas expansions and a couple of one-time events affecting outbound, 
• We keep the stock as BUY rating and keep TP at US$74/ADS.

• Mercedes-Benz China confirmed Thursday that it is implementing business adjustments, including layoffs, to improve operational efficiency in a challenging and changing market.
• The Chinese subsidiary of the German auto giant said restructuring and downsizing were unavoidable, but it pledged to comply with legal regulations and offer affected employees severance packages above market standards along with help finding alternative work.
• While the company did not disclose which departments or what percentage of employees would be affected, sources told Caixin that Beijing Mercedes-Benz Sales Service Co.

• January air cargo activity moderated; timing of LNY holiday also made for tough comps
• January Int’l air cargo tons at US gateways grew far less than inbound (ocean) TEUs
• Data from Asian carriers & US gateways indicates low utilization, softening growth

• Hong Kong has halted land sales in order to boost the office market within the region.
• Singapore’s Centurion saw their profits more than double to $257M, driven by soaring property valuations.
• Alibaba announces plans to invest a substantial $53 billion in AI infrastructure development.

• Potentially damaging negative news has emerged in Mongolian Mining (975 HK) that could possibly result in the suspension of its mine or a review of conditions on the lease agreement.
• Prime Minister’s Order No. 32 established a Working Group to assess the mining license for the Tavan Tolgoi coal deposit and review earlier parliamentary and government resolutions.
• As the issue has become political, we are unsure about the outcome of this review and would stay on the sidelines until a firm resolution is reached. 

• Price momentum for deep sea container carriers continued to plunge in January 2025
• January’s revenue decline vs the Summer peak also historically bad despite LNY boost
• We take down emerging consensus view that “all trade disruptions are good for carriers”

• Four former, long term Intel board members yesterday warned against any plans to have TSMC take over Intel Foundry, their second time weighing in on the future of the company
• They posit that TSMC is under pressure from the US Administration with Taiwan security being used as a bargaining chip
• They’re not wrong in their assertions that it would be a terrible idea, both for the US and for TSMC, but these are days where anything can happen. Let’s see

• Arwana Citramulia published a solid set of FY2024 results, with sales growth to +7.4% YoY, although FY2024 net profit was down slightly due to cost pressures and higher promotional spending.
• The company continues to see a favourable product mix shift towards higher-end tiles, especially its ARNA porcelain brand. New capacity coming on stream in 2025 will provide a further boost.
• The gas subsidy has yet to be confirmed for the ceramic industry, but expectations are that it will come through shortly. Arwana Citramulia valuations remain attractive, with higher growth ahead.

• BFI Finance Indonesia booked a strong finish to FY2024, as bookings increased by YoY and HoH, with the NPF ratio falling at the same time leading to higher revenues. 
• The company’s loan growth momentum has picked up considerably as indicated by management in the previous quarter, which should be reassuring for investors, with growth set to continue in 2025.
• BFI Finance Indonesia has yet to see a meaningful contribution from its collaboration with GoTo Gojek Tokopedia, which is a potential future growth driver. Valuations attractive on PBV to ROE. 

• Nanya Tech Soared in February on DRAM Recovery and Custom HBM News
• Nanya’s Custom HBM Strategy & the Positive DRAM Market Outlook
• Memory Monitor Universe: SK Hynix & Micron Still Have Strong FY2025E Expected Growth; Nanya Tech Still Negative

• In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 3 March.
• Our top 10 Korean stock picks from 14 to 28 January are down on average 1.8%, slightly outperforming KOSPI which is down 2.2% in the same period.
• The top 10 Korean stock picks (bi-weekly) include SL Corp, Korea Electric Terminal, BNK Financial, S1, LX International, Doubleugames, Samsung C&T, Amorepacific Corp (pref), SK Telecom, and POSCO International. 

• Cantabil Retail India (CANT IN) is one of the few vertically integrated garment players and has a store count of 576 and retail space of 7.4 lakh sq.ft.
• The company has done well over the last five years to improve its financial position; it has grown its topline at a healthy rate while margins have improved significantly.
• But having said that, we have concerns with elevated inventory levels that have remained high historically for a garment player. Moreover, some capital advances and RPT should also be considered.

• Kinatico Ltd (ASX:KYP) is a ‘Know Your People’ regtech company providing workforce compliance monitoring and management technology and services.
• RaaS Research Group interviewed CEO Michael Ivanchenko post the H1 FY25 results.

• Jio Financial Services (JIOFIN IN) has launched a robust digital ecosystem with its flagship JioFinance app, enhancing its tech-driven financial service offerings.
• The digital-first strategy minimizes legacy constraints, enabling personalized financial solutions that significantly boost efficiency and competitive advantage.
• This evolution redefines traditional banking, positioning JFSL as a versatile, technology-led powerhouse for sustainable growth in India’s financial sector.

• Li Auto’s (LI) share surged 13% on photos released on its official Weibo of a BEV SUV slated for release in April, two months ahead of our expectation. 
• Based on information released, we dialed up LI’s BEV forecast from 73K to 106K for 2025, contributing 20% of revenue instead of 15%. 
• We raise LI’s TP from US$22 to US$25 but keep at SELL.

• CEO is clearly saying that demand is growing faster than expected and has visibility into 2025-26 revenues (we have a fairly good line of sight of investment in data centers)
• Models are getting better and using up to 100x more computing power (ie chain of thought and reinforcement learning). The AI market is today Consumer, tomorrow Agentic, later on Physical.  
• The stock is not expensive at 30x FY26 EPS and 24x FY27 EPS. Get over it.

• Raffles Medical Group (RFMD SP) reported mixed 2024 result. However, 2H24 revenue increased 15% YoY, operating profit rose 5% YoY, and adjusted PATMI jumped 38% YoY.
• China operation is recovering, with revenue growing 10% YoY to S$65M in 2024. Three general hospitals in China have demonstrated strong potential for growth and have a positive outlook ahead.
• Raffles has revised its dividend policy to pay out at least 50%. The company intends to buy back up to 100M ordinary shares over the next two years.

• This will be another quick idea flag and different from the typical cheapish-catalyst type situations I have often written about.
• This is a superb business that I’ve been monitoring for awhile that just saw some nasty correction.
• I’ve been tweeting incessantly about this business, and shares finally collapsed yesterday despite a relatively good earnings report.

• Dassault Systèmes CEO highlights European automaker struggles and growth readiness in US and Asia in January 2025.
• SK Hynix achieves impressive 70% yield in HBM4 testing, signaling advancements in memory technology.
• China’s tungsten export controls cause market price fluctuations, disrupting global supply chains. Foxconn partners with Sonora in Mexico for innovative smart city project.

• Lynas, a six and a half billion dollar mining company, faced challenges in their half yearly results with higher unit costs and a significant decrease in cash position.
• The company’s cash reserves have diminished by over $200 million, raising concerns about the sustainability of their operations in the current rare earths price environment.
• Expansion projects in Mount Weld and Kalgoorlie are ongoing, with potential impacts on future financial performance and the need for additional financing options.

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• Dassault Systèmes has agreed to acquire Contentserv, a provider of AI-driven product information management platforms, for EUR220m, enhancing Centric’s PLM offerings for consumer goods industries.   
• Centric aims to reach EUR500m in revenue by 2028, with goals of becoming a EUR1bn brand. Contentserv is expected to boost Centric’s revenue by 25%, contributing to its growth plans.  
• We deem the integration of Contentserv into Centric will occur gradually. Additionally, Centric will benefit from 3D Universes, an AI-based environment designed to leverage legacy 3D designs and PLM data.

• Mesoblast Ltd (MSB AU) has announced pricing for Ryoncil in the U.S. in tandem with the economic value of treatment with product availability planned for the current quarter.
• Wholesale acquisition cost of Ryoncil has been set at $194K per infusion. Ryoncil infusion is given twice per week for 4 weeks. This brings the full treatment cost to $1.55M.
• The pricing is strategically determined against the cost of treating a child who dies of SR-aGvHD of $2.5M and calculated total benefits of patient outcomes using Ryoncil of $3.2–4.1M.

• Cognex is a leader in machine vision, providing ruggedized cameras and software for automation in manufacturing and logistics environments
• Cognex’s products fall into four categories: Guide, Gauge, Inspect, and ID
• ID includes Dataman products for reading barcodes and optical character recognition

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• iPhone 16e starting at $599, positioned as entry level but not bare bones
• Apple targeting customers who hold onto phones for a long time with best battery life in any iPhone
• Modem C1 upgrade seen as key contributor to improved battery life, but was not highlighted in launch, raising questions about performance quality

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• Lite On Signals for Continued Strength in Cloud/AIOT Ahead of Upcoming Nvidia Results
• Lite On’s 1Q25E Outlook Was Positive and Did Not Indicate A Near-Term Slowdown
• Industry Take-Aways — Still No Signs of Acceleration on PC/Consumer… However Signals Cloud/AIoT Demand Healthy

• Trump administration wants TSMC to partner with Intel to strengthen US ties, potentially impacting global server market.
• WNC to unveil new 5G and AI connectivity solutions at MWC 2025 Barcelona, boosting industry innovation and technology.
• Vivo aims for 30% sales growth in Taiwan by 2025 with V50 launch, while Tata plans to sign 10 MoUs in semiconductor sector.

• Nvidia has been the unrivaled darling of the AI boom, establishing itself as a portfolio must-have, and is now the second-most valuable company in the world. 
• Wafer-Thin AI chips are the company’s biggest earnings driver, but Nvidia is growing in other high-margin segments too, including software, gaming, and automotive.
• Here’s what makes this company important, what to expect next from the tech giant, and – most interestingly – what Nvidia’s stock is really worth.

• We compile our selection of small-cap companies based on our desired characteristics: insider buying, value, near term growth triggers and margin of safety.
• Out top picks are Sarla Performance Fibers Ltd (SRPL IN) , Quess Corp Ltd (QUESS IN) , and GNA Axles Ltd (GNA IN)
• Given the steep correction in small and mid-cap Indian stocks, all the mentioned companies have seen active insider buying in recent weeks.

• The headline Indian mid cap indices are still expensive, despite a sharp decline since late September. However, when adjusted for growth, many fundamentally attractive mid-caps are cheap.
• We screen mid-caps with PEG<1.3x, consensus Buy recommendations and increasing consensus EPS estimates over the past six months. We choose well-covered stocks so that the consensus estimates are meaningful.
• Our basket of 20 contains six financial stocks, five materials, four industrials and three consumer discretionaries. Many pertain to the themes of renewable energy, data centers, healthcare, tourism and infrastructure.

• A high hurdle for OP in Q1 – Q1 FY9/25 results showed normalisation of OP growth as the one-off impact from a large order for AD (autonomous driving) / ADAS (advanced driver assistance systems came off compared to Q1 FY9/24.
• As a result, Toyo Corporation reported an operating loss, normalising to more ordinary performance for Q1 when OP tends to be weak due to seasonality.
• Notwithstanding the seasonal loss, the Q1 FY9/25 results were in line with the company’s initial plan. 

• Saudi Aramco’s Q4 revenue is expected to fall 2.6% QoQ but rise by 10.6% YoY, while its EPS is anticipated to drop 7.5% QoQ and 11.9% YoY.
• With OPEC likely extending supply cuts past April 2025, Saudi Aramco has little room to raise output, leaving growth largely dependent on oil prices.
• Aramco acquired a 25% stake in Unioil Petroleum Philippines, expanding its retail presence, and partnered with Linde and Schlumberger to develop a major CCS hub.

• Digital Realty is a global data center player across all major markets.  The DC demand will be back by secular trends including AI, Cloud and enterprise digitalization
• DLR’s focus on pricing, development pipeline and balance sheet enables it to achieve long-term sustainable growth, delivering a mid single digit FFO growth
• We also think DLR has maintained a strong balance sheet.  DLR is still in the process of de-leveraging with healthy credit metrics

• Posco International Corporation (047050 KS) and SeAH Steel Holdings (003030 KS) are two key beneficiaries of the Trump administration’s efforts to significantly increase the Alaskan gas fields.
• The initial estimated cost of this massive project is about $44 billion for the pipeline and related infrastructure.
• Despite recent rallies, the valuations of POSCO International and Seah Steel Holdings remain attractive. 

• Total revenue grew by 24% in 4Q24, higher than 19% we expected.
• The stock price plunged in Hong Kong as we expect in our preview note.
• However, we believe, any stock decline over 11% means overreacted.

• Net Revenue growth accelerated to +23% Y/Y in Q424, far stronger than in Q224 and Q324
• But costs and expenses grew even faster, leading to surprisingly sharp margin contraction
• We no longer view Trip.com as an attractive play on Chinese travel; airlines may outperform

• Trump Adminstration Gearing Up to Further Restrict China’s Access to Chip Technology — Could Restrict Servicing of Existing Equipment
• Foxconn and Honda: Could This Be a New Alliance in EV Manufacturing?
• TSMC (2330.TT; TSM.US): Will TSMC Work on Intel Foundry Services? There Are Three Paradoxes… 

• Huge deal with Mitsui purchasing a 40% stake in Roads Ridge for billions of dollars
• Decades-long negotiation process with owners of the asset culminating in the sale
• Roads Ridge is a massive iron ore deposit with potential for long-term production, standing out for its high quality iron content and low phosphorus levels in comparison to other mines in the region

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• Greaves Cotton (GRV IN) is raising funds by separately listing its mobility arm, enabling better focus and execution for the segment.
• Company is guiding for 30,000Cr topline by 2030  with 13-15% margins excluding mobility segment.
• The company’s core business remains profitable and on a growth path. New funds will improve the mobility arm’s operations and support current business growth would be from ongoing capex investments.

• Deposit growth has been decent and exceeded loan growth, allowing HDFCB to bring down its credit-deposit ratio. Average deposits grew 15%+ YoY, while loans grew at 7%+ YoY in Q3FY25.
• Despite tough macro environment, HDFCB was able to gain market share in deposits. Despite headwinds from tight liquidity leading to competitive pricing, HDFCB was able to maintain its NIM.
• HDFCB is benefitting from its productivity and technology-led enhancements with costs growing at just 7% YoY. Despite weak macro-economic environment, HDFCB’s asset quality has remained pristine, barring seasonality in Agri-loans.

• Global capital flowing into Australian logistics market as it reaches turning point, attracting investments.
• Japan REIT makes deals in Tokyo, buying Tokyo Tower for $120M and selling office block for $62M.
• CapitaLand India Trust acquires Bengaluru offices for $170M after project funding, expanding its portfolio.

• Tocvan reported the first RC drill result from the 100% controlled Expansion Area just to the north of the Main Zone.
• A total of 776.2m of drilling was reported across 4 drill holes.
• The highlight intercept was a scout hole reporting 3.1 g/t Au over 19.8m, including 19.4 g/t Au over 3.1m.

• Twilio Inc. presented a compelling performance in the fourth quarter of 2024, showcasing its evolution and strategic progress.
• The company reported $1.195 billion in revenue, marking an 11% increase year-over-year, achieving consecutive quarters of double-digit growth.
• This quarter was particularly notable as it was Twilio’s first to achieve GAAP operating profitability, ahead of its initial target, underscoring the firm’s focus on balanced growth and profitability.

• Sony Group Corporation’s recent earnings highlighted its financial performance for the third quarter of fiscal year 2025 and provided insights into future strategic direction amid a transitional leadership period.
• The company’s revenue and profit saw substantial growth, yet certain challenges remain, reflecting the complexities within its diverse business segments.
• Positive aspects of Sony’s financial performance include a 7% year-on-year increase in consolidated sales, excluding its Financial Services segment, reaching JPY 3,695.7 billion for the quarter.

• Alibaba reported C4Q24 top line in-line with our estimate and consensus, but non-GAAP NI beat our estimate/consensus by 12%/11%, attributable to cost control and AntFin’s profitability improvement;
• But what drives the stock was the strong performance in AliCloud and an articulation of a clear investment logic on Generative AI (GAI), 
• While the AI inflection point has arrived earlier than we expected, we remain eying for the domestic e-commerce turnaround with Jiang Fan at the helms. 

• TSMC: +17.2% Premium; Wait for Lower Levels Before Going Long
• UMC: -1.9% Discount; Can Consider Going Long the Spread at Current Level
• ASE: -0.6% Discount; Discount is Opportunity to Long the Spread

• Trip Com, Contemporary Amperex Technology and Xiaomi all hit fresh highs in EM fund ownership.
• Rotation in all three was among the most positive across all China stocks, with all measures of fund ownership moving higher.
• Conviction opens from GIB, Putnam and Aubrey we among the funds driving ownership higher.

• Manappuram Finance is a leading Indian NBFC specializing in gold loans, offering financial services to lower socio-economic backgrounds with 5,286 branches across India.
• The RBI had barred the microfinance arm Aashirwad Micro Finance from sanctioning and disbursing loans due to non-compliance.  Company is planning for  IPO and intended to raise INR 1500 Crore.
• Manappuram is committed to growing its secured lending portfolio, including gold loans and other secured assets and anticipates overall growth of 15%-18% in the consolidated loan book.

• Refocusing on the core business with the promoter stepping back on the board & demerger. Also focusing on value-added products and reducing debt from rights issues & internal accruals.
• Solara Active Pharma Sciences (SOLARA IN) had issues in getting US FDA approvals for the Visakhapatnam facility & pricing pressure on the key product Ibuprofen.
• The CRAMS and high-potent API segments have the potential to generate significant value over the next 4-5 years through the addition of new customers.

• Luckin reported C4Q24 revenue 6%/1% higher than our estimate/consensus, and non-GAAP operating profit 11%/38% higher than our estimate/consensus, driven by SSSG recovery and cost material savings;
• After turning around same-store-sales-growth (SSSG) via price hike in C3Q24, Luckin finetuned the cup sales to price ratio to reach an optimal point in C4Q24, 
• We upgrade Luckin from UR into BUY rating and set new TP at US$40.  

• Duck projects and operations, specializing in large-scale builds
• Jeff Quartermain leads Perseus Mining, discussing Predictive stake and valuation
• Emphasis on creating value and diversification in mining investments

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• Crocs, Inc. recently reported its financial performance for the fourth quarter and full year of 2024.
• The company experienced steady growth, achieving $4.1 billion in total revenues for the year, a 4% increase over the previous year.
• Its adjusted gross margin improved by 230 basis points to 58.8%, while the adjusted operating margin was recorded at 25.6%.

• Keppel is an asset manager and operator with business in infrastructure, real estate and connectivity
• The company is undergoing transformation from an asset-heavy conglomerate to an asset light manager with strong recurring income
• We also like the strong capital management and its focus on total shareholder returns, valuation is not demanding

• Global EV sales in 2024 were strong, with forecasts for 2025 looking promising as well, showcasing the growth of the electric vehicle market.
• Asus and Gigabyte secure large AI server orders from Nvidia, highlighting efforts to boost US manufacturing and strengthen partnerships in the tech industry.
• iPhone 16e price hints at a move away from the budget market, indicating a potential shift in Apple’s pricing strategy for future phone releases.

• The Berkshire Hathaway Annual Shareholder Letter for 2024 was released this weekend. Much was made in Japanese twitter-space of the comments he made on the Japanese trading houses. 
• He said Berkshire Hathaway’s admiration of these companies “has consistently grown” and Berkshire likes their capital deployment, managements, and their attitude in respect to investors. They also pay themselves reasonably.
• He mentioned Berkshire will increase their stakes somewhat in the trading houses “over time.” That comment deserves some exploration, as does the comment about yen funding.

• Grab Holdings (GRAB US) booked a strong finish to the year, beating its upwardly revised guidance, despite some decline in margins due to increased investment, partly due to competitive pressures.
• The company continues to expand its total addressable market through its Saver initiatives, whilst successfully increasing monetization through its high-value products, and improving retention and engagement through Grab Unlimited.
• Financial services and advertising are becoming increasingly important drivers for growth and profitability. Expect some seasonal slowdown in 1Q2025 but the outlook remains positive and valuations are attractive. 

• Haw Par Corp (HPAR SP)  announced a special dividend of S$1.00 per share for 2024, alongside its regular S$0.40 dividend.
• Investors have long pushed for higher payouts and special dividends, given the company’s strong cash reserves and free cash flow.
• Based on our analysis of its financials, Haw Par could sustainably raise its regular dividend to S$1.00 per share without tapping into reserves.

• Late January timing of LNY holiday boosted last month’s travel and tourism statistics
• Chinese airlines are filling outbound flights, which should lift pricing & margins (eventually)
• Numbers suggest Chinese consumers eager to travel, but spending remains muted

• Airbnb’s latest earnings report sent its stock surging 12.6% as investors reacted to stronger-than expected financial performance and ambitious growth plans.
• Despite missing out on much of the recent travel boom, the company is now positioning itself as the “Amazon of travel” by expanding beyond its traditional short-term rental business.
• CEO Brian Chesky emphasized this strategic pivot, revealing plans to invest up to $250 million in new businesses set to launch in May.

• In 4Q24, Bilibili’s total revenue increased by 22% YoY and its largest business, value-added services, increased by 24% YoY.
• SAIC president, Mr. Jia, removed 63 mid-level managers in the passenger car department.
• Mengniu raised a profit warning that net profit will plunge by 95% – 99% in 2024.

• In the first quarter of fiscal year 2025, Applied Materials demonstrated strong performance, achieving record revenue levels that surpassed previous highs.
• The company announced that advanced semiconductors are a significant driver of this growth, supported by trends in technology such as artificial intelligence (AI), which are reshaping the global economy.
• AI, identified as a major transformative technology, has supported approximately a 20% year-over-year growth in global semiconductor sales in 2024, with projections suggesting this market could exceed $1 trillion in annual revenue by 2030.

• Hyatt faced a mixed financial landscape in its recent earnings report, revealing both strategic advancements and some challenges.
• On the positive side, Hyatt announced a significant acquisition of Playa Hotels & Resorts for approximately $2.6 billion.
• This move is expected to enhance Hyatt’s position in the luxury all-inclusive sector, particularly in Mexico and the Caribbean, by incorporating Playa’s assets into Hyatt’s distribution channels such as ALG Vacations and Unlimited Vacation Club.

• China announced game approval for the February batch. The number of games approved remained at a higher level than 2023.
• The pace of China game approval appears to have accelerated to the same level as pre-tightening.
• Of the companies that we are monitoring, Netease, Zengame got one approval each.

• In April 2024, we published a few notes on Japan REITs on the back of interest rate cut cycle and weaker Asian currencies
• Today, the macro environment has shifted, Japan has started a rate hike cycle. 
• Japan Hotel REITs will suffer due to negative impact on tourism and higher cap rate assumptions

• It is a paradox US President wanted to make the US the number one semiconductor manufacturing country but is very likely unable to change the existing environment in the US.
• Another paradox is that a foreign company must obtain approval from the relevant US authorities before transferring control of the specific US company, which may not be feasible.
• It raises the third paradox that a Taiwanese company would need to operate an existing US entity with their company’s expertise under different cost conditions.  

• FY Mar-25 guidance has been raised again after strong 3Q results. Growth should continue next fiscal year with rising demand from TSMC. 
• Sales to Chinese customers bounced back strongly last quarter, defying predictions. Capacity adds and process upgrades should continue to drive demand from China.
• FPD, PCB and printing equipment are now profitable and should remain so. More efficient production and slower growth in depreciation should also support the operating margin.

• Bilibili (BILI) reported C4Q24 revenue and GAAP operating profit in line, 87% vs. our estimates and in line, 130% vs. consensus. 
• We see BILI’s content strategy to be working to drive higher and better traffic, benefiting the ads business. 
• We BUY and raised our TP to US$24 awaiting further details on game pipeline. The stock trading at 2025 PE of 31x.

• In 2025, the NHSA will continue to deepen the VBP of drugs and centralized procurement of medical consumables, covering 700 drug varieties in total. 
• Valuation of the entire industry has been sluggish for three years. With the positive changes, we think it is the time to be optimistic on China healthcare in 2025.
• Due to the craze for DeepSeek/AI, PAGD’s stock price surged.Although this is a great story, the extent to which DeepSeek can bring substantial benefits to PAGD remains to be verified.

• We think Keppel DC REIT is an interesting play to look at for the AI revolution.  The markets are supported by strong fundamentals
• With a strong balance sheet and low leverage, the Company has ample headroom to do more M&As to drive DPU growth
• The stock has corrected post Deepseek incident.  We think valuation is attractive and presents an interesting opportunity.

• Aster DM Healthcare Ltd (ASTERDM IN) reported stellar performance in Q3FY25. Revenue achieved 11% YoY growth to INR10.5B, driven by increased patient volumes and growth in ARPOB. 
• Consistent growth across core businesses, combined with strategic cost optimization, operational efficiencies, and optimized service mix, have significantly strengthened margins, with Q3FY25 operating EBITDA margins standing at 19.3% (Q3FY24: 17.7%).
• Our original investment thesis is intact. Margin levers are working well. Expansion plan is on track. Macro trend is favorable. Merger with Quality Care can be a game changer.

• Pegasystems, a leader in software solutions for customer engagement and operational efficiency, demonstrated a robust performance in its fiscal year 2024.
• The company reached its strategic milestone of becoming a “Rule of 40” company, reflecting balanced growth and profitability.
• This achievement highlights the successful execution of its transition strategy from a traditional sales model to a subscription-based cloud business.

• Albemarle Corporation presented its financial performance for the fourth quarter and full year of 2024, highlighting several critical aspects of the company’s operations, financial health, and market dynamics.
• The fourth quarter saw Albemarle reporting net sales of $1.2 billion, although this marked a decline primarily attributed to lower lithium market pricing.
• Nevertheless, the company achieved a positive milestone with an adjusted EBITDA of $251 million, showing enhancements in productivity, cost efficiency, and sales volumes across its business segments.

• AppLovin’s financial performance for the fourth quarter of 2024 indicates a pivotal shift in its operational focus and growth strategy.
• Over the quarter, total revenue increased by 44% year-over-year to $1.37 billion, fueled significantly by an expanded advertising business that brought in $999 million in revenue.
• The company’s adjusted EBITDA surged by 78% to $848 million, maintaining a healthy margin of 62%.

• Wyndham Hotels & Resorts had a solid fourth quarter and full-year 2024 performance, marked by robust room growth, increased earnings, and strategic initiatives aimed at enhancing long-term positioning.
• However, some areas presented challenges that could affect future performance.
• Positively, the company reported a 4% net room growth for the year, which included opening a record 69,000 rooms.

• After an 18-month saga, the Burman family has taken control of REL, acquiring 25.16% equity and planning a INR 2,000 crore capital infusion.
• This takeover ends promoter-less governance, injecting fresh strategic capital to transform Religare into a competitive NBFC and drive long-term recovery.
• Investors should now view Religare as a turnaround story, with robust governance reforms, lower debt, and renewed focus on core financial services promising sustainable growth.

• BIDU reported C4Q24 top line, non-GAAP op. profit and GAAP net income in-line, (22%) and (7.0%) vs. our est. and (3.7%), (24%) and in line vs. cons. 
• While monetization on a largely in-house app repertoire can ensure AI revenue to start kicking in in C2H25, we are concerned on the size of this revenue, 
• We maintain our SELL but raise TP to US$80 to reflect a short-term trading opportunity around AI monetization.

• Royalty Pharma has reported robust financial results for the fourth quarter and full year 2024, underscoring its position as a leading funder of innovation within the life sciences sector.
• With a significant emphasis on strategic capital deployment, Royalty Pharma achieved portfolio receipts of $2.8 billion, marking a commendable 13% growth and surpassing initial guidance expectations of 5% to 9%.
• This financial performance reflects the company’s adept management and its capacity to expand its portfolio effectively.

• Confluent, Inc. exhibited several key strengths and challenges in its recent financial performance.
• The company’s subscription revenue for the fiscal year grew by 24% to $250.6 million, driven by a 38% increase in Confluent Cloud revenue and a 10% growth in Confluent Platform revenue.
• This reflects continued strong demand for enterprise-grade data streaming solutions, particularly in regulated industries.

• SK Hynix CEO remains bullish on semiconductor industry growth, highlighting new opportunities amidst challenges like DeepSeek.
• Oppo forges ahead with release of Find N5 foldable phone, undeterred by market slowdown in pursuit of growth and innovation.
• EU greenlights funds for Infineon’s Dresden fab in chip incentive effort, signaling continued support for semiconductor sector. Samsung exec receives sentence for leaking 18nm DRAM tech to CXMT, highlighting importance of protecting intellectual property.

• World may finally have found the key to real growth after years of trying to build a fashion retail business in shopping centres, but with limited success.
• The big problem was that it didn’t have the supply chain skills to compete with the big retailers like Uniqlo and Adastria.
• Buying the supplier that helped grow those same chains means World now has a real chance to enter the big leagues.

• Tyler Technologies’ fourth-quarter results reflect a period of strong financial performance, characterized by significant growth and expansion across its key operational pillars.
• The company experienced 12.5% revenue increase, largely spurred by a 21.9% jump in subscription revenues, particularly within their SaaS offerings which saw close to 23% growth.
• This rise in subscription income underscores a strategic pivot towards cloud-based solutions, which remained a focal point in Tyler’s strategy, evident by accelerated SaaS adoption and a reduction in on-premise license revenues.

• Allied Blenders & Distillers (9844250Z IN) ‘s Q3 FY25 results showed robust growth in revenue at Rs. 2,346 crores (up 15.5% sequentially, 12.9% YoY) and strong premiumisation with expanded export reach.
• Enhanced margins driven by effective cost optimization and profitable state brand mix highlight ABDL’s resilience and ability to capture premium market trends, strengthening its competitive position in India’s spirits industry.
• The company aims to grow the aggregate market share of its four millionaire brands and consolidate its position in the P&A whisky segment through its three millionaire brands

• BlackLine, a cloud-based platform for finance and accounting professionals, reported its Q4 2024 earnings with mixed performance metrics.
• The company achieved 9% revenue growth despite the adverse impact of a strong U.S. dollar, which added currency headwinds.
• Non-GAAP operating margin was recorded at 18%, and the revenue renewal rate showed improvement, positioning at 96%—a significant metric in customer retention and satisfaction.

• Fidelity National Information Services, Inc. (FIS) presented its financial results for the fourth quarter and full year 2024, outlining a strategic focus on driving commercial excellence, targeting growth vectors, and enhancing profitability.
• The company reported overall revenue growth for 2024 and noted that its growth trajectory is set to accelerate in 2025.
• In 2024, FIS reported a revenue growth rate between 3% to 4%, slightly below the company’s initial expectations due to one-time items affecting the quarter.