Equity Bottom-Up Archives | Page 45 of 222 | Smartkarma

• TSMC: +16.6% Premium; Returning to the 15 – 20% Trading Range?
• UMC: +0.5% Premium; Near the Middle of the Historical Trading Range
• ASE: +5.2% Premium; Participating in Two Investor Conferences in Next Two Weeks

• Welcome to Consumer Tales & Trends, your weekly roundup of the latest corporate developments, investment reports and sector events in the consumer industry.
• Temu, (owned by PDD US), and Shein might need to rethink their US strategies if a new rule stops overseas shipments of tariffed products from bypassing US customs duty.
• Singapore passed a groundbreaking law last week to protect gig workers. Other countries may follow suit and this could adversely impact margins. Take note: Meituan (3690 HK) , Zomato (ZOMATO IN)

• The P/B multiple of Cosco Shipping Energy Transportation (H) (1138 HK) has pulled back to 0.8x now, from 1.3x three months ago. The risk-reward payoff has improved.
• Historically, there is no long-term correlation between oil prices and share prices. Hence, we should not be overfocused on the recent pullback in oil prices.
• Although the market consensus is high, FY24 should still see growth. The 3Q24 VLCC spot rate is 27.4% higher YoY, potentially boosting quarterly results and sustaining a high FY24 yield. 

• Workers at US East/Gulf Coast ports could strike without new contract by Oct 1st
• But data suggest importers have been boosting inventory over past few months
• Although US West Coast port workers support ILA, they’re unlikely to strike

• We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety.
• Our top picks are Perfect Medical Health (1830 HK), The Keepers Holdings (KEEPR PM), Taste Gourmet (8371 HK), Uchi Technologies (UCHI MK), and Ginebra San Miguel (GSMI PM).
• We update recent results for Philippines names and Uchi Technologies (UCHI MK), which recently declared earnings.

• RaaS has initiated coverage of video software and hardware technology group BirdDog Technology (ASX:BDT) with a base case valuation of $0.27/share, representing 335% potential upside to the current share price.
• A challenging FY24 is now behind the business and the causes of the problems have been addressed and resolved, in our view.
• BDT invested heavily in R&D through the downturn with the investment program set to yield results on a strong revenue uptick from the release of multiple new products across several categories.

• Tuhu Car (9690 HK) is poised to capture the lion share of China’s automotive aftersales service industry that is forecasted to grow at 7.3% CAGR from 2023:30. 
• Tuhu is on an inflection of high earnings growth (+30% CAGR) as it has reached scalability, cost efficiency, and its younger shops are maturing profitably.    
• Our fair value of HKD24 implies 25x FY25 PE – average for US peers. A bargain with 3-year CAGR of 30%, net cash, and churns high free cash flow.

• In this China banks screen, we focus on the credit quality headwinds going forward and which are the better positioned banks to confront the challenge
• China bank shares’ PBV ratios have eroded over time, due to low growth and credit quality concerns; yet through our analysis of these bank, we see selective contrarian positive opportunities
• CCB is a core GEM bank buy for its deeply discounted valuations and strong balance sheet; Ping An Bank is the deep value contrarian pick; Minsheng is our fundamental sell

• Palo Alto Networks’ fiscal fourth quarter 2024 earnings announcement underscores both strides and challenges in the cybersecurity landscape, reflecting a dynamic sector intensively engaged with technological advancements and emerging threats.
• Chairman and CEO Nikesh Arora detailed the company’s response to significant cybersecurity threats, including ransomware and public data extortion, emphasizing a heightened focus on AI and platformization to simplify client security architectures.
• Financially, Palo Alto Networks reported exceeding its quarterly revenue and EPS guidance.

• Insulet Corporation has demonstrated robust financial performance in the second quarter of 2024, aligning with the company’s primary goal of enhancing diabetes management through its Omnipod products.
• Jim Hollingshead, the CEO, highlighted the significant demand for Omnipod 5, which has been central to the company’s growth both domestically and internationally.
• The company’s innovation trajectory remains strong with numerous product launches, including the full market release of Omnipod 5 integrated with Dexcom’s G7.

• GameStop, a major player in the video game retail industry, revealed a complex scenario in its latest earnings presentation for the fourth quarter and full year 2022.
• The company’s leadership highlighted substantial shifts in strategies aimed at improving profitability and creating sustainable long-term growth.
• From a financial perspective, GameStop reported a net income of $48.2 million for the quarter, compared to a considerable net loss of $147.5 million in the same quarter of the previous year.

• Latest RDC fare data deep dive suggests scope for negative surprises at easyJet and Wizz Air – we publish a detailed analysis across booking windows.
• ​easyJet fare data suggest potential for late-market disappointment, albeit winter prospects more encouraging.
• Wizz Air fare data cast doubt on hopes for fare growth.

• Ambarella’s Q2 Fiscal Year 2025 earnings revealed a mixed yet promising scenario as the company navigates through a challenging economic environment while seizing growing demands for AI-powered solutions.
• Dr. Fermi Wang, President and CEO, alongside CFO John Young, presented a detailed account of the company’s performance and future outlook which provides a comprehensive understanding of its position and strategies moving forward.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Teradyne, a leading provider of automated test equipment, exhibited mixed financial results in the second quarter of 2024, grappling with various segment-specific dynamics and macroeconomic factors.
• The company reported a robust performance in its System on Chip (SOC) and Memory segments, primarily boosted by elevated demand from cloud AI applications.
• Additionally, Teradyne noted solid deliveries in the Compute sector, attributed to the dense network requirements of AI data centers.

• The Descartes Systems Group has reported its quarterly financial results, illustrating a strong performance across several key financial metrics.
• This performance is anchored by a 14% increase in total revenues yearover-year, with a significant component of this growth being organic, estimated at about 9%.
• Furthermore, the company enjoyed a 23% increase in net income compared to the previous year, and adjusted EBITDA climbed by 17%, surpassing the company’s target growth range of 10%-15% annually.

• Toll Brothers, a prominent homebuilder, showcased an optimistic third quarter for the 2024 fiscal year, reflecting growth and stability despite varied market conditions.
• In this quarter, the company reported record home sale revenues of $2.72 billion, demonstrating a strong performance with the delivery of 2,814 homes at an average price of $968,000.
• The adjusted gross margin significantly outperformed projections, reaching 28.8%, aided by operational efficiencies and a favorable mix of home sales.

• Significant increase in the lithium market, with double digit percentage increases in the sector
• The information about the market came from China and was transparent, leading to positive market reactions
• Potential impact on downstream battery facilities and operating costs for CATL ‘s lepidolite mine

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• UiPath, a leader in AI-powered automation platforms, has exhibited a positive performance in its fiscal second quarter of 2025, as discussed in their recent earnings call.
• The company surpassed the upper end of its financial guidance across key metrics, an indication of effective execution and robust value delivery to customers.
• The report showed significant advancements, with UiPath achieving a 19% increase in Annual Recurring Revenue (ARR), reaching $1.551 billion.

• Global auto and EV sales in 2024 are heavily impacted by supply chain resilience, as emphasized by Cenex CEO Robert Evans.
• Silicon Saxony in the EU is attracting global players with EUR50 billion investments, positioning itself as a semiconductor hub.
• Chinese game developers are pushing AI boundaries by developing NPCs to virtual societies, while Samsung offers aggressive discounts in the US to compete with Apple’s Korea strategy in 3Q24.

• Samsara’s second quarter fiscal 2025 earnings report reflects a period of substantial growth and profitability, underscoring the company’s strategic positioning and operational efficiency in the Internet of Things (IoT) and connected operations market.
• The company announced annual recurring revenue (ARR) of $1.26 billion, marking a significant year-over-year increase of 36%.
• Additionally, a notable achievement includes a quarterly record for non-GAAP operating margin, which highlights Samsara’s ability to scale profitably.

• Apple’s latest iPhone release received mixed reviews, with some finding it to be a ho-hum upgrade
• The base level iPhone 16 was seen as having more significant improvements compared to previous models
• There is a shift in Apple’s strategy to attract more users to upgrade to the base model iPhone 16, potentially increasing sales volume but leading to a drop in average selling price

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• An announcement by Contemporary Amperex Technology Co. Ltd. (CATL) that is to halt production at its giant lithium concentrator in Yichun, Jiangxi province, triggered a sharp rise in domestic lithium mining companies’ stocks.
• Ganfeng Lithium Group Co. Ltd. and Tianqi Lithium Corp. hit their daily price limits Wednesday, while other lithium firms saw significant gains.
• CATL’s decision to stop production comes after steep falls in lithium prices, which have dropped 60% from previous highs.

• AMD’s market share in the desktop CPU segment has surged to 30%, driven by strong Ryzen sales and innovative product releases, challenging Intel’s longstanding dominance in this space.
• Intel’s revenue in the data centre segment fell 20% year-over-year, reflecting challenges in product delays and increasing competition from AMD’s EPYC processors, impacting overall growth potential.
• Both companies have ramped up AI-related investments, with AMD committing $1.5 billion and Intel investing $3 billion in AI technology development, aiming to capitalize on the growing market demand.

• Sumber Alfaria Trijaya (AMRT IJ) booked a solid set of 1H2024 results despite a seasonally slower quarter with margins holding up well and market share improving versus competition.
• Outlet expansion for Alfamart is running ahead of guidance, with Alfamidi growing in line and a more measured expansion for Lawson, as it beds down last year’s aggressive rollout. 
• Outside Java is seeing the strongest growth in sales and the focus on expansion of DCs and stores plus Alfamart is increasing the number of chillers. Valuations reflecting growth prospects.

• Guidewire Software Inc. concluded its fiscal fourth quarter and full year 2024 financials with robust performance, spearheaded by a successful shift towards cloud-based services.
• The transition to a vertical software-as-a service (SaaS) model from an on-premise system appears to capture significant market interest, marked by an annual recurring revenue (ARR) growth of 14% and fully-ramped ARR acceleration of 19%.
• This transition underscores the company’s strategic realignment towards offering more scalable and efficient cloud solutions.

• Operating revenue increased 79.6% YoY to JPY1.5bn, driven by strong sales of TDM-621 across multiple regions.
• Operating loss narrowed to JPY317mn, with SG&A expenses rising 16.0% YoY to JPY1.2bn and R&D expenses up 1.7% YoY.
• Recurring loss of JPY787mn, including foreign exchange losses of JPY449mn and interest expenses of JPY21mn.

• Rakuten is a Japanese conglomerate with a diverse portfolio of businesses, including e-commerce, finance, travel, and mobile telephony.
• Founded during the late nineties global Internet boom, Rakuten has become a ubiquitous brand in Japan.
• The loyalty point system has become a key feature of Rakuten’s business model, connecting its various services together.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Remitly is a digital international money transfer company competing with traditional providers like Western Union and MoneyGram.
• Mario Sabelli sees Remitly as potentially becoming the “booking.com of the digital remittance space.”
• He believes Remitly is well-positioned to dominate the market due to its scale and competitive advantages over legacy competitors.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• GitLab’s Q2 Fiscal Year 2025 results showcase a blend of growth and strategic enhancements, particularly in its DevSecOps platform enriched with AI capabilities.
• Revenue grew substantially by 31% year-over-year, totaling $183 million, a testament to the adoption of new accounts alongside expansions in existing clientele including notable names like Delaware North and Guild Mortgage.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• In assessing the financial performance and business dynamics of Copart, Inc. for its fourth quarter and fiscal year 2024, certain key elements stand out which prospective investors should consider.
• The company reported a successful year, underscoring robust growth and strategic expansion across various segments of its operations.
• However, also noted were certain industry-wide challenges and specific business costs that affected overall financial outcomes.

• DICK’S Sporting Goods’ second quarter 2024 earnings showcased a compelling financial performance, emphasizing its robust strategies and execution capacities.
• The sporting goods retailer reported an encouraging 7.8% increase in sales compared to the previous year, reaching nearly $3.5 billion.
• This result reflects not only an enhancement of average sales tickets but also an uptick in transaction volumes, signaling strengthened consumer engagement and market share.

• Hong Kong market is range bound with conglomerates showing strength over the last few weeks.  As the CNY/HKD strengthens the A/H premium should narrow.
• SUNeVision Holdings (1686 HK) reported good results on the back of increased demand driven by the AI sector. 
• Yum China Holdings (9987 HK),Yum China Holdings (YUMC US) reported flat sales and an increase in operating profit in a difficult fast food retail environment in China.

• Hewlett Packard Enterprise Co (HPE) demonstrated a strong financial performance in the third quarter of fiscal 2024, reporting substantial year-over-year revenue growth and a marginal increase in non-GAAP diluted net earnings per share.
• As delineated in their earnings call, the company continues to navigate a dynamic market environment, focusing on growth sectors such as AI, hybrid cloud, and networking.
• Revenue reached $7.7 billion, a 10% increase from the previous year, which is attributed to notable growth in AI systems revenue and other portfolio enhancements.

• Casey’s General Stores wrapped up its first quarter of fiscal year 2025 with a positive outlook on its operations, financials, and strategic direction.
• Led by CEO Darren Rebelez and CFO Stephen Bramlage, the company’s performance reflected a strong start to the fiscal year with notable progress in both store operations and financial metrics.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Asana’s second quarter fiscal year 2025 earnings presentation highlighted several fundamental aspects of the company’s financial health and strategic direction.
• The overall tone indicated cautious optimism, marked by a cautious stabilization in revenues with indications of accelerating growth in the foreseeable future.
• Financially, Asana reported a revenue increase of 10% year-over-year, surpassing its own projections and signaling subtle strength within certain operational segments.

• What you need to know: • ADF reported mixed Q2 financials that missed our revenue estimate due project delays but largely beat our profitability estimates.
• • Revenue came in at $74.9M vs. our $92.6M (due to $35M in delays) while EBITDA came in at $24.9M (33% margin) vs. our estimate of $17.9M.
• • Management remained bullish on the long-term growth of the sector and ended the quarter in large net cash position.

• Activist investor, Oasis Management, recently disclosed that they had taken a significant 6.3% stake in the company
• I suspect that Oasis don’t need to be overly aggressive with this one. Given the fundamental outlook, we see the financial model delivering double digit earnings growth
• After a strong Q1 report, we expect an upward revision to guidance. The stock is cheap at <11x earnings. We see over 30% upside

• RPPL reported a strong Q1FY25 led by margin improvement. EBITDA margin rose to 14.7% vs 13.5% QoQ and 12.0% YoY. Stability in raw material pricing and operating efficiencies helped margins. 
• While growth in overall revenues was average at 8.3% YoY, growth in high-margin packaging products segment, which contributes 80% of total revenues, was strong at 16% YoY. 
• Exports at INR 9.2cr were below the INR 10cr+ run-rate, however, the growth momentum is intact. RPPL is in process of finalizing an export contract with a major global distributor.

• Spatial display market focuses on distribution optimization, demographic targeting, and visibility enhancement to boost sales and engagement.
• Panel makers shift to chip packaging as consumer electronics industry slows down, while Taiwan plans its own Starlink due to satellite launch delay.
• Texas offers incentives to attract Taiwan chip giants, Apple Intelligence foresees revenue growth, and MediaTek anticipates an upturn with Dimensity 9400.

• This Insight focuses on Industrials, particularly those that derive a significant portion of their revenue from Air Conditioners (ACs).
• Companies in focus are Voltas Ltd (VOLT IN), Johnson Controls-Hitachi Air Conditioning India (JCHAC IN),
• Blue Star Ltd (BLSTR IN) and Havells India (HAVL IN) 

• 2024 would be the low point in performance/valuation of Sinopharm. Due to the low base in 2024, revenue/net profit in 2025 is expected to rebound (e.g. high single-digit positive growth).
• Declining financial cost ratio is key driving force for profitability.Since the Fed would cut interest rate, a low interest rate environment helps Sinopharm reduce financial costs, thereby increasing profit margin.
• Since China hopes to establish a valuation system with Chinese characteristics, it would help drive up valuation of SOEs.Thus, there’s valuation repair opportunity for Sinopharm (e.g. P/E return to 8).

• 10 Questions for https://investors.sgx.com/_security-types/stocks/M14 What are some of the latest updates from InnoTek with reference to its financial performance? Net profit for 1H24 remained steady at S million, unchanged from the previous year, which includes a S million provision for inventory obsolescence.
• In the past two years, InnoTek has diversified its customer base into technologically advanced sectors such as GPU servers, gaming machines, medical equipment, and ATMs.

• Allegiant Gold is a leading gold explorer with five assets in Nevada.
• Its flagship, the Eastside District, hosts a 1.4Moz Au and 9Moz Ag deposit.
• AUAU has commenced a 5,000m drill program at Eastside, part of which will focus on resource expansion and the rest on exploration targets.

• Sai Gon Cargo Service (SCS VN) reported yet another strong month of data, with cargo volumes for August 2024 up 40% YoY. YTD volumes are up 43%. 
• At this run rate, the company will comfortably beat its volume guidance of 248,000 tons for  FY24 (>30% YoY). Q3FY24 will benefit from the full effect of the tariff hikes.
• With the recent correction, the stock trades at 11.9x FY24e and has an 8% dividend yield. The company’s next catalyst would be its Q3 FY24 result in November. 

• Shield is a commercial-stage pharma company delivering specialty products that address the unmet medical need of patients with iron deficiency (ID).
• Since its July 2021 US launch, Shield and Viatris have increased physician awareness of the differentiating characteristics of ACCRUFeR® as an oral ID drug, in order to generate sales traction.
• 1H’24 results have confirmed that sales continue to progress well, while costs have been closely controlled.

OSE Immunotherapeutics has announced the initiation of its Phase III registrational study (Artemia) for lead cancer vaccine Tedopi, with the trial launching in the US, Canada, Europe and the UK. Artemia is a confirmatory pivotal trial designed to assess the efficacy and safety of Tedopi as a monotherapy versus the standard of care (SoC) in HLA-A2 positive patients with metastatic non-small cell lung cancer (NSCLC) and secondary (acquired) resistance to immune checkpoint inhibitors (ICIs). The primary endpoint is overall survival (OS) and we expect top-line results in 2027. If the data are positive, this should support a regulatory registration in the second-line setting in Europe and North America.

• TSMC: +15.9% Premium; Sales Rose 33% YoY in August & Headroom Increased
• UMC: +1.8% Premium; Largest Monthly Decrease in ADR Headroom, Has Consistently Been Decreasing Since May
• ASE: +2.0% Premium; At Current Level Can Consider Going Long the Premium

• Krsnaa Diagnostics (KRSNAA IN) expands into B2C, adds new pathology labs, and secures major government contracts for further growth.
• Growth in PPP and retail sectors, improved margins, and expanding service offerings solidify market leadership.
• Krsnaa’s aggressive expansion strategy and diversification indicate strong long-term growth potential with new B2C trajectory and Asset Light Model Expansion.

• Welcome back to the portfolio updates series! This month, I enjoyed a long vacation with my family, spending three weeks traveling through Italy by car.
• We began our journey from our home near Munich, which allowed us to traverse the entire country from north to south and back again.
• We entered Italy through South Tyrol and drove down to Tuscany, where we spent a week. Afterward, we continued our journey all the way down to Puglia, where we stayed for ten days before making the return trip.

• Global smartphone sales are anticipated to rise in Q2 2024, presenting an opportunity for Taiwanese firms to act quickly.
• IBM’s Kyndryl spinoff is focusing on addressing India’s cybersecurity talent shortage, signaling the need for immediate action.
• Apple is prioritizing user privacy in its slow launch strategy, while Huawei revolutionizes mobile innovation with a triple-fold smartphone.

• NIO Motors (NIO) reported C2Q24 top line, non-GAAP operating loss and GAAP net loss in-line, narrower and narrower vs. our estimate, and in-line, narrower and in-line vs. consensus. 
• The brightest spot of the result is gross margin due to both vehicle and service gross margin improvements. 
• We keep rating at SELL and raise TP to US$1 to reflect better OPEX control.

• TSMC Extends Global Foundry Dominance Amid 33% Sales Surge – A Buy on Weakness Despite Market Concerns
• Apple ‘Glowtime’ AI Announcements: Mixed Analyst and Media Reactions May Overlook Key Advantage — Apple Is Best Positioned to Seamlessly Integrate AI Into Your Smartphone Experience
• Taiwan Market Gainers & Losers: Consumer Electronics & Memory Names Some of the Hardest Hit

• Market consensus is unrealistic as it expects China Tourism Group Duty Free (1880 HK) to record 32.1% YoY and 14.6% HoH earnings growth in 2H24. More downgrade risk ahead.
• Average per-customer duty-free sales in Hainan dropped by 19.2% YoY in Jul, indicating the negative wealth effect and deteriorating middle-class spending appetite.
• Overseas duty-free sales to Chinese residents surged by almost 50% YoY in Aug, implying a diversion effect which is also detrimental. 

• Speculative liquidation of crude oil positions opens up an opportunity
• A seasonally strong period for crude tanker rates coming up
• Company option scheme for senior management approved. Strike above current price

• CYND Co., Ltd. is a dominant player in the reservation management software for beauty salons in Japan, with 90% of its revenue coming from recurring contracts
• The company has high barriers to scale and has acquired its second largest competitor, effectively eliminating competition
• CYND has the potential to significantly increase its revenue over the next decade, led by its co-founders with strong insider ownership, and is currently valued at JPY 4.1bn with a projected net 10-year IRR of 24.1% for Sun Mountain.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Indosat (ISAT IJ) remains optimistic about the outlook for its core mobile business as it expands into rural areas and simultaneously increases ARPUs, with the growing use of AI tools. 
• The company also seeks to become an AI Native Telco whilst also pursuing a separate AI business through its tie-up with NVIDIA, and building a data centre edge through BDx.
• Indosat Tbk PT (ISAT IJ) is also optimistic about its home broadband business projecting 2m subscribers by 2028. Valuations remain attractive relative to peers, especially given ISAT’s growth outlook. 

• Last Friday, Seven & I Holdings (3382 JP) issued a response to Alimentation Couche-Tard (ATD CN)’s non-binding acquisition proposal.
• At $14.86 per share, Seven & I’s special committee stated that the offer significantly undervalues the company.
• The response also highlighted that the proposal fails to address the numerous and substantial regulatory challenges the transaction would encounter from U.S. competition authorities.

• ETF flows showed subdued activity during the week although the Southbound Connect platform had a minor outflow.
• Great Wall Motor (2333 HK) and China Feihe (6186 HK) both had positive news sentiment helping their share prices rally on better earnings announcements.
• New World Development (17 HK) announced a major asset impairment write-down sending its stock to historic lows.  China Tourism Group Duty Free (1880 HK) disappointed on 2Q24 sales and profits.

• Nongfu Spring (9633 HK)‘s valuation has come down to a much more reasonable 20x forward PE with expected net profit CAGR of 15% for the next 3 years.
• The derating is largely due to the negative media portrayal of the company’s Nongfu brand since February 2024, resulting in a -18% decline in its water business in 1H24. 
• Unsweetend tea business on the other hand has continued to shine, growing 59% yoy in sales in 1H24, while operating profit of the segment surged 63% yoy. 

• Visibility is poor. Following excellent 1Q results, management raised FY Mar-25 sales guidance by 14%, operating profit guidance by 53% and net profit guidance by 57%. 
• Strong demand for AI processors and memory should support more than 35% growth in IC tester revenues and a doubling of operating profit in the two years to Mar-26.
• The shares have dropped to the bottom of their recent trading range, but are still selling at more than 30x our EPS estimate for next fiscal year.

• Industry wheel loader sales rose 15.2% in Aug, continuing the healthy momentum. A low base in 2H24 will be another favourable factor, and Lonking Holdings (3339 HK) is well placed.   
• Forklift outlook will stay strong and serve as a growth engine. There is also a significant pick-up in demand for industry excavator sales in Jul and Aug.
• Net cash amounted to 81% of the share price. Including investments, it will increase to 118%. Conservative FY24 consensus earnings forecast means potential upside surprise.

• SLMs aiming to expand presence in GenAI business opportunities, while Joinsoon Electronics plans for 50:50 production split in Thailand by 2025.
• European carmakers face challenges from potential Chinese retaliation against tariffs; South Korean equipment makers benefit from Chinese companies targeting OLED technology.
• Global gaming subscription market expected to reach US$19 billion by 2024, with ITRI, SIIQ, MOEA collaborating to develop resilient semiconductor industry ecosystem. Taiwan’s offshore wind farm installation signals industry shifts.

• Nanosonics Ltd (NAN AU) reported significant turnaround, with recording H2FY24 revenue of A$90M, up 14% over the first half, driven by 20% increase in capital revenue in H2 over H1.
• For FY25, Nanosonics guided for accelerated revenue growth of 8–12%, driven by growing capital revenue with greater unit volumes and increasing recurring revenue aligned with growth in installed base.
• The company expects FY25 gross profit margin of 77–79% versus 77.9% in FY24, on higher production volumes in FY25 after reducing inventory in FY24.

• NVIDIA recently reported stellar financial achievements for its second quarter of fiscal 2025 with total revenue reaching $30 billion, marking a significant 122% increase year-over-year.
• This surge was primarily driven by unprecedented growth in the Data Center segment, which reported revenues of $26.3 billion, reflecting a 154% increase from the previous year.
• The strong demand for NVIDIA’s latest Hopper GPUs, coupled with the advancing deployment of Blackwell platforms, has significantly contributed to this uptrend.

Martin Currie Global Portfolio Trust’s (MNP’s) performance was negatively affected in 2022 by the shift in interest rate expectations as US rates quickly moved up from 0.25% to 5.50%, in response to rising prices. Now, with inflation coming down, the consensus view is that US interest rates will soon be lowered, which should be beneficial for the valuation of long-duration growth stocks. Also, Zehrid Osmani, MNP’s manager since October 2018, has a proven track record of successful stock picking during periods when the stock market is driven by company fundamentals rather than when investor focus is on macroeconomic developments. Hence, Osmani has a high degree of confidence that there are better times ahead for MNP’s performance.

• After Dollar General’s (DG) disastrous earnings couple of weeks ago, I was quite concerned about their prospects in the near-term.

• However, a week later after digesting through Dollar Tree (DLTR) as well as DG management’s explanation in the Goldman Sachs Retailing Conference, I have updated some of my thoughts about DG…in the positive direction.

• Nonetheless, I have decided to abide by my decision not to inject more capital to DG, but to increase my notional exposure to DG via long-dated call options. 

• Welcome to Consumer Tales & Trends, your weekly roundup of the latest corporate developments, investment reports and sector events in the consumer industry.
• Hyundai Motor India’s August dispatch volumes were down 8% versus previous year – mostly due to sluggish demand for hatchback segment amd intense competition in the SUV segment.
• Toyota Motor (7203 JP) is on a fast track in India recording high double digit volume growth thanks mainly to successful launch of rebadged Suzuki models.

• We compile a list of ten high-yielding/net cash or low-net debt stocks in the apparel/footwear value chain. Just because HK has become a pariah for investors, trailing dividend yields are approaching 6-20%.
• We track recent developments of these companies; for given their low valuations any incremental recoveries could spark huge share price returns.
• Crystal International (2232 HK), Stella International (1836 HK), and Yue Yuen Industrial Holdings (551 HK) stand out – they have had positive inflections in their earnings/dividend payouts and capital allocation.

• JNBY Design Ltd (3306 HK) is successful in capturing China’s niche designer fashion segment. Its FY24 net profit surged 36.4%, despite the challenging retail market.
• Gross margin reached a record high of 67.3% in 2H24 on higher purchases from loyal members. Operating cash flow surged 70.7% YoY, affirming its status as a cash cow.
• Including special dividends, FY24 payout ratio was 95%. At 75% ordinary payout for FY25, it sits on a 10.9% yield. Net cash equals 22% of the share price.

• Autodesk, Inc. concluded its second quarter of Fiscal Year 2025 with robust results, characterized by a 13% revenue growth in constant currency, which has led to an upward revision of the full-year guidance.
• This reflects not only the success of the recent launch of their new transaction model in North America but also anticipates a similar introduction in Western Europe come September.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Elastic N.V. reported an 18% year-over-year growth in total revenue, with cloud revenue experiencing a 30% increase.
• The non-GAAP operating margin was 10.7%, aligning with the company’s performance exceeding its revenue and profitability guidance.
• A key strategy highlighted was their “land, expand, and consolidate” approach, which has led to growth in customers spending over $100,000 to more than 1,370.

• In August, Tesla’s shipments grew by 3% YoY, while top domestic producers’ shipments grew over 30% YoY.
• The revenues of two domestic sneaker makers, 361 Degree and Anta, increased by 19% YoY and 14% YoY in 1H24.
• In 2Q24, NIO’s deliveries and revenue increased by 144% YoY and 99% YoY, but its losses were still significant.

• Affirm Holdings recently reported its Fourth Quarter Fiscal 2024 Earnings and the management emphasized the company’s robust performance both in terms of growth and profitability for the fiscal year.
• The discussion underlined Affirm’s management’s ability to leverage technological advancements, particularly in artificial intelligence and machine learning, to maintain control over credit outcomes, which they describe as an intentional result of their strategies.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Nutanix’s fourth quarter and fiscal year 2024 earnings results mark a period of solid performance and strategic progress.
• During the fourth quarter, Nutanix exceeded its financial guidance, achieving revenue of $548 million, which represents an increase of 11% year-over-year.
• This growth was supported by substantial free cash flow generation and the acquisition of significant new customers, the highest in three years.

• Burlington Stores, Inc. reported robust financial results for the fiscal second quarter of 2024, highlighted by significant growth in total sales and improvements in gross margin.
• The positive performance can be largely attributed to strategic store expansions and efficient supply chain management.
• The company opened 36 new stores, taking the total to 1,057 locations, and reported a 5% increase in comparable store sales, surpassing the guided range of flat to 2%.

• Brown-Forman Corporation’s first quarter fiscal year 2025 results reflect a challenging start to the year, consistent with the company’s expectations of a stronger second half.
• The globally recognized beverage company reported an 8% decline in reported net sales and a 4% decrease in organic net sales, highlighting a period of adjustment and alignment with strategic transitions and economic influences.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Ipca Laboratories (IPCA IN) reported 12% YoY growth in domestic revenue to INR8.7B in Q1FY25. The company has delivered market beating growth in both acute and chronic segments.
• Standalone EBITDA margin expanded 312bps YoY to 22.3% (FY25 guidance: 21%). Margin improvement is driven by favorable product mix, lower input costs as well as lower manufacturing and other costs.
• Ipca is reducing FY25 revenue growth guidance to ~9.0% from 10.5–11.0% and raising FY25 consolidated EBITDA margin guidance by 0.5–1.0% to 18.5–19.0%.

• Media rife with narrative of booming inbound foreign tourism to China
• But the numbers are well below historical highs, and climbing up from low base
• Chinese tourists, not foreign, determine strength of Chinese tourism recovery

• Miniso (MNSO) reported C2Q24 revenue (3.2%)/1.9% vs. our estimate/consensus. Non-GAAP NI (5.6%)/(2.7%) vs. our estimate/consensus. 
• Recent weak economic data in both China and U.S.,along with MNSO’s deceleration in overseas average store sales;
• We cut TP from US$34 to US$24 and maintain BUY.

• Post merger, HDFC Bank (“HDFCB”) has been under pressure in regards to sustaining its loan growth, which very much hinges on rapid deposit growth.
• While the deposit growth has been weak, it has been an industry-wide issue. Furthermore, at times, the period-end numbers can be misleading.
• Focusing on average numbers paints a better picture of growth. Looking at the averages, deposit growth has been strong at 4.6% QoQ, despite liquidity issues in the banking system.

• Intel’s CFO says the company is going to “kind of skip over productizing 20A”
• This decision removes an important, looming milestone from Intel’s roadmap, i.e. the ramp of Arrow Lake later this year
• The decision to outsource all Arrow Lake tiles, apart from final packaging, strongly suggests that Intel 3 and Intel 18A are not capable of a cost-competitive volume ramp

• Ganesha Ecosphere (GNPL IN) is expanding from textiles to FMCG packaging with rPET granules, aiming for a 10-12% market share in the recycled PET market by 2029.
• The shift to high-margin rPET products and expansion into FMCG packaging aligns with regulatory trends and growing demand for sustainable materials.
• GEL’s strategic focus on high-value, sustainable products and robust market position suggests significant growth potential and improved profitability.

• The acquisition positions AMD to capitalize on the booming AI infrastructure market, which is expected to grow to $372.9 billion by 2029, leveraging ZT Systems’ hyperscale computing and integration capabilities.  
• AMD will use ZT Systems’ experience in AI infrastructure deployment for cloud providers like AWS and Azure, helping it compete with NVIDIA’s 70% market share and Intel’s data center push.
• Analysts expect the acquisition to be financially accretive by 2025, with ZT Systems enabling AMD to provide comprehensive AI solutions, boosting its presence in the cloud, AI, and enterprise sectors.

• PDD Holdings, Inc. has shared their financial results for the second quarter of 2024 along with an overview of strategic actions and challenges.
• The company saw substantial revenue growth, with total revenue reaching RMB 97 billion, marking an 86% year-on-year increase.
• This significant growth stems mainly from robust online marketing and transaction services.

• Negara value attributes, its growth potential captured by its low PEG ratio and its improving efficiency ratio all stand out; pre- and post-provision returns edged higher, with high NPL coverage
• We are also positive on Mandiri for its quality attributes, its premium returns, and its strong credit quality metrics; Mandiri has the second-best efficiency ratio after mega-cap Bank Central Asia
• Bank Mega has seen credit quality stabilise in 2Q24, but its returns are under pressure, with the efficiency ratio worsening steadily; cost of risk is likely to increase going forward

• Indo Tambangraya Megah (ITMG IJ) recently announced an underwhelming 1228 Rph/share dividend for H1 FY24 (implying a 9% annualized yield).
• Core profits for H1 2024 were 157 mn USD ( excluding 21 mn USD forex and a six mn USD write-off). We are confident of sequential improvement in earnings. 
• The company has deep value: 43% of its market cap is in cash, its PE is 5.7x, and its yield, based on a 65% payout ratio, is 11%.

• Kangwon Land has received approval to expand its total casino area from 14,512 square metres previously to 20,260 square metres (up 40%). 
• The betting limits in the foreign players only zone will increase significantly from 300,000 won (about US$225) to 300 million won (about US$225,000). This represents a 1000x increase.
• We would argue that there is a high probability of Kangwon Land benefiting not just from higher sales and profits but also from higher valuation multiples. 

• Didi Global Inc. is investing 670 million yuan ($94 million) in an affiliated firm of digital mapping company NavInfo Co. Ltd. (002405.SZ -3.09%) and has moved its team responsible for smart cockpit development to the venture, as the Chinese ride-hailing giant takes another step away from carmaking to streamline its business.
• Beijing-based Didi’s smart transportation arm will take a 16.46% stake in AutoAI (Nanjing) Technologies Co. Ltd., becoming its second-largest shareholder, NavInfo said in a Shenzhen Stock Exchange filing dated Wednesday.
• NavInfo, AutoAI’s largest shareholder, will also invest an additional 100 million yuan in AutoAI, diluting its stake from 30.29% to 27.01%, the filing said.

• Revenue’s surged 47% YoY, driven by a 200% increase in infrastructure software revenue. Despite strong revenue growth, the company posted a $1.88B net loss due to a $4.5B tax provision
• AI revenue is projected to grow by 10% sequentially in Q4, surpassing $3.5B, and is expected to total $12B for fiscal 2024. VMware annualized booking value increased 32% QoQ.
• Despite beating Q3 estimates, Broadcom’s Q4 revenue guidance of $14B fell short of the $14.04B expected by analysts. This led to a 7% drop in shares post-earnings.